PowerPoint Presentation
Extracted text (via pymupdf)
3823 characters
Potential G. O. Bond Special Election 2025 April 22, 2025 Timeline for 2025 Special Election 2 Timeline • May 7 - Notify Maricopa County of participation by • June 8 - Adopt Resolution referring the questions to the ballot. • June 9 - Ballot language due to County • August 6 - Last day to submit “for” or “against” statements to City Clerk • October 8 - Publicity pamphlets mailed • October 8 - Early voting ballots mailed • November 4 - Election Day 3 Agenda • Overview of G. O. Bonds • Survey Results • Council Discussion and Consensus – Call for a 2025 Special Election 4 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 5 • 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 6 • 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 7 $19,065 $19,269 $19,588 $19,807 $20,071 $20,409 $20,689 $21,217 $21,837 $22,838 $24,424 $0 $5,000 $10,000 $15,000 $20,000 $25,000 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 Secondary Property Tax History (In Thousands) Secondary Property Tax 8 G.O. Bond Debt Service Capacity $- $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 G.O Bonds Annual Debt Service Principal Interest 9 Remaining Bond Authority Category Amount now remaining Anticipated Need Parks and Rec $0 $95,000,000 Flood Control $1,875,146 $30,000,000 Government Facilities $3,714,220 $35,000,000 Library $6,193,165 $50,000,000 Community Engagement Consultant 10 • Per Council direction at January 28, 2025 workshop staff received consensus to work with Community Engagement Consultant. – Professional Polling Firm – Trust for Public Lands • Survey conducted week of March 10, 2025 • Statistically valid results + or - 4% margin of error Survey Results 11 • In General, is the city heading in the right direction 62.8% Definitely or probably right 16.7% Definitely or probably wrong • Top Issues – 31.5% Homelessness – 21.5% Public Safety and crime – 15.3% Streets and transportation – 11.8% Jobs and the economy – 9.7% Controlling city spending – 2.0% Parks and recreation – 3.5% Other – 4.0% Don’t know – 0.7% Refused Specific Bond Questions Surveyed 12 • $35 million for City Operations Facilities • $30 million for Flood Control • $95 million for Parks • $50 million for Libraries Bond Committee 13 • Educate committee as subject matter experts • Begin meeting in May • Educational focus – What is a bond? – What are the key bond funded projects? – Educational materials Staff Recommendation 14 • Consensus to notify County of a 2025 Bond Election • Consensus to Draft Bond Questions return to council • Two bond questions – Flood Control for $30 million – Government Facilities for $35 million • Consider Parks and Libraries in a future election – Conduct a similar poll in early 2026 Questions? 15