PowerPoint Presentation (Added 1/24/2025)*
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Potential G. O. Bond Special Election 2025 January 28, 2025 2 Agenda • Overview of G. O. Bonds • Remaining Bond Authority • Potential 2025 Election – Pros and Cons – Timeline • Other Considerations • Council Discussion and Consensus 3 General Obligation (G.O.) Bonds • Paid for using Secondary Property Tax – Council resolution on a flat levy • Must be authorized by voters • Constitutional Limits – Based on Net Assessed Full Cash Value – Outstanding G.O. debt may not exceed: • 20% for combined water, sewer, public safety, streets, transportation, open space, and parks • 6% for general municipal purposes Property Tax 4 • Primary Levy Limit – Any general fund expense – Allowable 2% increase per year • Secondary Levy Limit – Debt service on General Obligation (G.O.) bonds only – Currently flat levy • Assumes slight growth from new construction Debt Management Policy 5 • Adopted by City Council in October 2020 • The City Council will not authorize the issuance of new G.O. bonds if the levy amount required to pay the debt service on the existing G.O. bonds plus the new G.O. bonds exceeds the amount of the current year’s tax levy plus an amount of up to 2% per year for new growth (i.e. new property added to the tax rolls) • Existing G.O. Debt Service + New G.O. Debt Service ≤ Current Levy + 2% for Growth Secondary Property Tax History 6 $19,065 $19,269 $19,588 $19,807 $20,071 $20,409 $20,689 $21,217 $21,837 $22,838 $0 $5,000 $10,000 $15,000 $20,000 $25,000 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 Secondary Property Tax History (In Thousands) Comparison of Growth vs Inflation – NEW 7 $57 $91 $63 $76 $97 $281 $527 $621 $1,000 $1,586 $371 $554 $667 $538 $353 $922 $1,655 $908 $552 0 $0 $500 $1,000 $1,500 $2,000 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 Secondary Property Tax (In Thousands) Amount Attributable to Growth Amount if Increased by Inflation 8 G.O. Bond Debt Service Capacity 9 Full G.O. Bond Program - 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050 2051 2052 2053 2054 2055 2056 GO Annual Debt Service Existing G.O. Debt New Debt - Current Authorization New Debt - New Authorization 10 City Hall – General Government Bonds 11 Underground Fuel Tanks – G. O. Bonds 12 Heroes Park Lake – Parks Bonds 13 Public Safety Bonds Remodel Sine Building 14 Streets and Parking – Completed Projects Camelback Rd. Loop 101 – 91st Ave. Reconstruction 15 Flood Control – Completed Project • Bethany Home Outfall Channel 16 Flood Control – Completed Projects 17 Parks and Recreation – Completed Project 18 Parks and Recreation – Completed Project 19 Remaining Bond Authority Bond Category Total Bond Authority Granted Remaining Bond Authorization Amount Planned in 5-Year CIP Library $25,096,000 $6,193,165 $25,923,660 Government Facilities $40,910,000 $3,714,220 $7,470,198 Flood Control $20,554,000 $1,875,146 $17,225,185 Parks and Recreation $16,155,000 $0 $17,803,074 Total $102,715,000 $11,782,531 $68,422,117 Potential Projects 20 • Estimated $60,000,000 for Parks and Recreation – Heroes Recreation Center – Sahuaro Ranch Park Historical Roof Replacement – Foothills Skate Park Improvements – Chapparal Park Improvements • General Government – Operations Campus • Flood Control – Bethany Home 83rd Ave to Camelback Storm Drain – Bethany Home 43rd to 51st • Library – Main – Foothills – Velma Teague Potential November 2025 Special Election 21 • Pros* – Voters tend to be more informed on the issue – Other cities have seen success – No voter “fatigue” • Cons* – Cost up to $250k – Lower turnout – Potential school district elections at the same time *Not intended to be an all-encompassing list Staff Recommendations 22 • Mirror 2023 Process – Public Relations and Community Engagement Consultant • Highground • Trust for Public Lands – Gauge Public Sentiment – Dollar Amounts and Projects Based on 10-year CIP – Workshop on Results with Council Timeline for 2025 Special Election 23 Timeline • Notify Maricopa County of Participation by May 7th • Adopt Resolution referring the questions to the ballot to County by June 8th. • Materials due for Voter Information Pamphlet • Last day to submit “for” or “against” statements to City Clerk • Publicity pamphlets mailed • Early voting ballots mailed • Election Day Discussion and Consensus 24 • Continue on path to a 2025 Special Election? • Engage Consultant