General obligation bonds
Extracted text (via pymupdf)
2261 characters
General Obligation (G.O.) Bonds August 30, 2022 2 Overview • General Obligation (G.O.) Bonds • Information Pamphlet for Bond Election 3 G.O. Bonds • Paid for using secondary property tax – Assumes a flat levy • Must be authorized by voters • Constitutional limits – Based on Limited Property Value (LPV) – Outstanding G.O. debt may not exceed: • 20% of LPV for combined water, sewer, public safety, streets, transportation, open space, and parks • 6% of LPV for general municipal purposes (library, general government facilities, economic development) 4 Information Pamphlet for Bond Election • Arizona Revised Statute 35-454 • Must contain information on the: – Amount of the bond authorization – Maximum interest rate of the bonds – Estimated debt retirement schedule for the current amount of bonds outstanding – Estimated debt retirement schedule for the proposed bond authorization – Source of repayment – Estimated issuance costs 5 Information Pamphlet for Bond Election • Must contain information on the: – Estimated tax impact of debt service for the bonds on a residential, commercial, agricultural or other vacant property – Estimated total cost of the proposed bond authorization – Current outstanding general obligation debt and constitutional debt limitation – Projects and expenditures for which the bonds are to be issued • The purpose statement shall only present factual information in a neutral manner • Advocacy for the expenditures is strictly limited to the arguments submitted – Purpose for which the bonds are to be issued 6 Information Pamphlet for Bond Election • Any proposed general obligation bond authorization for which the principal and interest will be paid by a levy of property taxes, the ballot shall contain the phrase "the issuance of these bonds will result in a property tax increase sufficient to pay the annual debt service on bonds" • Arguments for and against the authorization of one or more of the bond propositions – Must include the sworn statement of the person submitting it – Set deadline to submit arguments for and against the bond proposition • The information pamphlet must be mailed at least 35 days before the election to every household that contains a registered voter 7 Questions?