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City Council Report
Date:
April 6, 2026
To:
City Council
Through:
Scott Butler, City Manager
Michael Kennington, Deputy City Manager/Chief Financial Officer
From:
Mark Hute, Treasurer
Subject:
Sale of 2026 General Obligation Bonds
Purpose and Recommendation
The purpose of this item is for the City Council to authorize the sale of the following
general obligation (“G.O.”) bonds to finance capital projects:
General Obligation Bonds, Series 2026 (the “Series 2026 Bonds”)
Principal: not-to-exceed $61,000,000
Background
In Citywide elections, Mesa residents have authorized the City to issue G.O. bonds to
finance capital projects. The Series 2026 Bonds represent portions of the bond
authorizations approved by the City electorate in G.O. bond elections held in 2020,
2022, and 2024. Financing long-term infrastructure allows the City to meet its capital
needs while allowing for residents and businesses who benefit from the infrastructure
to pay for it as it is being used.
Discussion
New Project Spending
Table 1 below shows City G.O. bond authorizations currently in use (some older
approval remains but is not being utilized). The table includes the purpose and
amounts of the proposed Series 2026 Bonds as well as the authorized amounts that
would remain after the sale.
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Table 1: General Obligation Bonds – Authorizations Currently in Use
Purpose
Election
Year
Remaining
Authorized But
Not Issued
Series
2026 Bonds
Estimated
Remaining
Authorization
Transportation
2020
$ 53,910,000
$ 29,000,000
$ 24,910,000
Public Safety
2022
82,000,000
19,000,000
63,000,000
Parks and Culture
2024
165,000,000
13,000,000
152,000,000
Public Safety
2024
90,000,000
0
90,000,000
Total
$ 390,910,000
$ 61,000,000
$ 329,910,000
The City plans to use the proceeds from the proposed bond sale to pay for the
purchase, design, and/or construction of capital projects through calendar year 2026
(although project spending may vary).
Attachment A – Project List lists the projects that are planned to be financed by the
proceeds of the Series 2026 Bonds.
Structure
Attachment B – Debt Service Table shows the structure of existing general obligation
debt service and estimated new debt service resulting from the Series 2026 Bonds.
Timeframe
The City is scheduled to price the proposed general obligation bonds the week of April
27 and close the transaction (receive the proceeds) on May 21.
Alternatives
The Council may choose not to proceed with the sale of general obligation bonds at
this time. The City could:
• cancel new bond-funded projects still in the planning stage
• utilize reserves to pay for a portion of projects already in progress
These alternatives are not recommended as they would reduce City reserves or
prevent completion of capital projects that are in various stages of planning and
construction.
Fiscal Impact
Debt service for the Series 2026 Bonds is funded by secondary property tax revenue
and has no direct impact on other City funds. However, there may be operational
costs/savings associated with the bond-funded capital projects that may affect other
City funds, including the General Fund.
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Coordination
The legal documents for the debt issuance are prepared by Zach Sakas at Greenberg
Traurig, the City’s bond counsel.
The City’s municipal advisors, Janelle Gold and Zac Lara at Hilltop Securities, prepared
many of the schedules and other financial information included in the issuance
documents.
The following City departments coordinated on the proposed bond issuance:
• City Attorney
• City Manager
• Engineering
• Fire and Medical
• Finance
• Management and Budget
• Parks, Recreation, and Community Facilities
• Police
• Transportation