General obligation bonds

General Obligation Bonds
August 16, 2022

2
General Obligation (G.O.) Bonds
• Paid for using secondary property tax
– Assumes 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
• 2021 legislation allows for repurposing bond authority

Property Tax
3
• 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

Property Tax
4
Schools
~62%
City of 
Glendale 
(Prim.)
~4%
City of 
Glendale 
(Voter 
Approved)
~13%
County
~14%
Special 
Districts
~7%
Total Tax 
Bill 100%

Property Tax Bill Example ($339k Home)
5
2019
2020
Changes
Assessed Value
$309,704 
$325,189 
$15,485 
Full Cash Value
$325,800 
$338,800 
$13,000 
Property Tax Levy Calculation
2019
2020
Rate
Levy
Rate
Levy
$ Change
Schools/Education (62%)
$2,045.00 
$2,095.24 
$50.24 
Glendale Primary (4%)
$0.41 
$128.34 
$0.40 
$130.60 
$2.26 
Glendale Secondary (13%)
$1.44 
$447.24 
$1.40 
$455.14 
$7.90 
County (14%)
$433.86 
$455.56 
$21.70 
Special Districts (7%)
$222.24 
$223.84 
$1.60 
Total
$3,276.68 
$3,360.38 
$83.70

Debt Management Policy
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• 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% Growth

Secondary Property Tax History
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$19,065 
$19,269 
$19,588 
$19,807 
$20,071 
$20,409 
$20,689 
$21,217 
$0
$5,000
$10,000
$15,000
$20,000
$25,000
FY15
FY16
FY17
FY18
FY19
FY20
 FY21
 FY22
Secondary Property Tax History (In Thousands)
Secondary Property Tax

8
G.O. Bond Debt Service Capacity

Questions?
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