08 General Obligation Bonds

General Obligation Bonds
June 1, 2023 – Citizens Transportation Oversight Commission

General Obligation (G.O.) Bonds
2
• 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
Schools
~61%
City of 
Glendale 
(Prim.)
~4%
City of 
Glendale 
(Voter 
Approved)
~14%
County
~14%
Special 
Districts
~7%
Total Tax 
Bill 100%
4

Property Tax Bill Example ($339k Home)
5
2021
2022
Changes
Assessed Value
$341,448
$358,520
$17,072
Full Cash Value
$353,200
$377,500
$24,300
Property Tax Levy Calculation
2021
2022
Rate
Levy
Rate
Levy
$ Change
Schools/Education (62%)
$2,116.39
$1,973.65
($142.74)
Glendale Primary (4%)
$0.38
$131.39
$0.37
$133.51
$2.12
Glendale Secondary (13%)
$1.34
$457.85
$1.40
$465.25
$7.40
County (14%)
$459.56
$447.18
($12.38)
Special Districts (7%)
$232.31
$217.51
($14.80)
Total
$3,397.50
$3,237.10
($160.40)

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% Growth

Secondary Property Tax History
$19,065
$19,269
$19,588
$19,807 $20,071
$20,409
$20,689
$21,217
$21,837
Secondary Property Tax History (In Thousands)
$25,000
$22,838
$0
$5,000
$10,000
$15,000
$20,000
FY15
FY16
FY17
FY18
FY19
FY20
Secondary Property Tax
7
FY21
FY22
FY23
FY24

G.O. Bond Debt Service Capacity
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
G.O Bonds Annual Debt Service
Principal
Interest
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5,000,000
$-
8
2023
2024
2025
2026
2027
2028
2029
2030
2031

Questions?
9

Streets G.O. Bond Funded Capital Projects

Agenda
1
1) Elements of a Capital Improvement Plan
2) Pavement Management Program
a)
Crack seal and fog seal are non-capital
b)
Mill & Overlay, micro seal, and slurry seal are capital and eligible for bond
funding
3) Arterial Reconstruction Program
a)
Eligible for bond funding
b) Pavement, sidewalks, landscape, and other improvements
4) GO Bond Funded Streets Capital Projects
5) 2020 GO Bond Election
a)
Ballot Language
b) Planned Projects

Elements of a Capital Improvement Plan
1
• Assets valued over $50,000 with a useful life of 5+ years
• Land, buildings, streets & improvements, plants, large
equipment
• Ten-Year Plan (only FY2023-24 is adopted as part of the
FY2023-24 budget)
Financial Policy:
A. Improve existing assets
B. Replace existing assets as needed
C. Construct new assets

Non-Capital Street Maintenance
1
• Pavement Management Plan
– Repairs usually last less than 5 years
– All roadways in City included in program
– Preservation of Street
– Requires coordination with residents, parking, and utilities
– Examples of non-capital street maintenance not eligible
for Bond funds
•
Crack seal
•
Fog seal
•
Pothole repairs

Pavement Deterioration & Life Cycle Costs
City of Glendale* 
1
*Information based on the 2020 Glendale Pavement Management Analysis

Pavement & Rating System
1
• Glendale Roadways
– 709 Centerline Miles
– 2,532 Lane Miles
• Pavement Rating Categories
– Excellent 85–100 PCI
– Very Good 70–85 PCI
– Good 60–70 PCI
– Fair 50–60 PCI

Pavement Condition & Funding
1
*Information based on the 2020 Glendale Pavement Management Analysis
Pavement 
Condition Index 
(PCI)
Glendale 
Funding 
Requirement*
83
$45 Million/Year
73
$30 Million/Year
65
$22 Million/Year
57
$13 Million/Year

Arterial Reconstruction Program
1
• Complete/partial removal and replacement of street
structure
• Includes improvements to extend life of pavement beyond
5 years
• ADA ramps brought to current standards
• Requires coordination:
– Business access
– Traffic flow
– Other cities, departments, and utilities

Safety
1
• Ride Quality
• Lane Configuration
• Pavement Markings
• Signage
• Detection
• Roadside Safety
• ADA Ramps
• Cross Walks
• Bike Lanes
• Bus Pullouts

Project Safety Components
Lane Markings
Crosswalk
Signage
ADA Ramps
Bike Lanes
10

Projects Requiring Additional Voter Authorization
2
Project Location
Cost Estimate
67TH AVE - DEER VALLEY RD TO PINNACLE PEAK RD
$4,841,000
CAMELBACK RD - 67TH AVE TO 75TH AVE
$4,841,000
CAMELBACK RD - 75TH AVE TO 83RD AVE
$4,326,000
BETHANY HOME RD - 59TH AVE TO 67TH AVE
$4,986,230
CAMELBACK RD - 59TH AVE TO 67TH AVE
$4,986,230
BETHANY HOME RD - 67TH AVE TO 75TH AVE
$4,986,230
BELL RD - 59TH AVE TO 67TH AVE
$5,135,817
83RD AVE - GLENDALE AVE TO BETHANY HOME RD
$5,135,817
67TH AVE - PEORIA AVE TO OLIVE AVE
$5,135,817
GLENDALE AVE - EL MIRAGE RD TO LITCHFIELD RD (2 MILES)
$10,579,783
BETHANY HOME RD - 43RD TO 51ST AVE
$4,727,137
NORTHERN AVE - 43RD TO 51ST AVE
$5,448,588

Projects Requiring Additional Voter Authorization
2
All estimates assume a cost inflation of 3% per year
Project Location
Cost Estimate
GLENDALE AVE - 43RD TO 51ST AVE
$5,448,588
THUNDERBIRD RD - 59TH AVE TO 67TH AVE
$5,448,588
67TH AVE - DEER VALLEY RD TO BEARDSLEY RD
$5,015,020

Cactus Rd: 59th Ave – 67th Ave
2

Camelback Rd: 83rd Ave – 91st Ave
2

Streets GO Bond Remaining Voter Authorization
2
TOTAL APPROVED PROJECTS BY FUND
4010
Streets
11,355,749
11,585,029
12,047,311
11,502,161
6,817,493
28,192,255
99,191,998
REMAINING VOTER AUTHORIZATION
4010
Streets
(11,355,749)
(22,940,778)
(34,988,089)
(46,490,250)
(53,307,743)
(81,499,998)
(81,499,998)

2020 G.O. Bond Election - Ballot Language
2
• $81.5 million in additional voter authorization
• Constructing and reconstructing major and local
streets, highways and bridges within the City
• Street signage, lighting, street widening and
landscaping

Questions?
2