Funding has been secured for three new fire stations through the Bank of New York Mellon Capital Markets, according to a recent news release from the city of Pueblo.

The city priced and sold certificates of participation (COP) in a competitive sale on Dec. 15. Nine bids were received, with the winning bid coming from BNY Mellon Capitals Market with a true interest rate of 3.656%.

A COP is a lease-purchase financing transaction with rental payments that are subject to annual appropriations and approval of the budget by Pueblo City Council.

A true interest rate is an interest rate that includes all ancillary fees and costs, such as finance charges, possible late fees, discount points, and prepaid interest, along with factors related to possible inflation.

This funding allows the city to move forward with plans to build three new fire stations, according to the Dec. 21 news release.

“The receipt of these funds is the culmination of years of planning and hard work by the City of Pueblo,” Mayor Nick Gradisar said in the release. “These state-of-the-art fire stations will be energy efficient and will increase the effectiveness of our Fire Department and will provide a safe environment for our firefighters.”

Securing the lower-than-expected interest rate brought the annual lease payments for the certificates of participation lower than budgeted amounts. The rate is less than half of the current bank prime loan interest rate — the rate at which commercial banks usually charge interest for their most trustworthy customers — of 8.5%.

Lease payments for the Series 2023 Certificates of Participation are scheduled through 2043.

Closing and delivery of proceeds from this transaction occurred on Dec. 21, at which time the city received $34.4 million to construct, improve, and equip three new fire stations in Pueblo. The city is expected to finalize design plans for the new fire stations in the first quarter of 2024.

The first fire station to begin construction will be Station 6, located on Pueblo’s east side. Station 8, which is also the city’s Fire Administration Building, is anticipated to be updated with a new build on the north side of the city, closer to the University Park area. The third fire station to be built, Station 11, will be located on the west side.

The new stations will provide healthier living conditions, updated equipment, improved safety for the firefighters, and added training facilities.

Among the benefits will be reduced cancer risk, private bedrooms for all firefighters at the station, and space to train inside, Chief Barb Huber previously told the Chieftain.

More on the new stations: Pueblo set to build three new fire stations to improve firefighter safety, response times

The addition of Station 11 will expand the City of Pueblo Fire Department’s reach and improve call times with new growth and housing development on the west side of town.

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This article originally appeared on The Pueblo Chieftain: Pueblo secures funding to build three new fire stations