Proposed 2021 Chandler Bond Election Presentation

Bond Election Work Session
Council Conference Room
May 10, 2021, 4:30 p.m. – 6:00 p.m.

Timothy A. Stratton, Partner
Gust Rosenfeld P.L.C.
tstratton@gustlaw.com | 602.257.7465
Bond Counsel, City of Chandler

• Bond Process Overview
• City Bond Counsel Overview
• Background on Arizona Election Laws and Process
• Publicity Pamphlets
• Bond Election Ballot Questions
• Overview of General Obligation Bond Questions
• Education vs. Advocacy
• Bond Election Education Plan of Action
• Next Steps
Agenda

Bond Process Overview

Citizen Bond Exploratory Committee
• Boyd Dunn, Chair, Finance Subcommittee
• Trinity Donovan,  Public Safety Committee
• Mark Gildersleeve, IT Subcommittee
• Ron Hardin, Public Works Subcommittee
• Ted Huntington, Parks Subcommittee
• Nina Mullins, Facilities Subcommittee 
• David Sperling, Airport Subcommittee

Citizen Bond Exploratory Committee Timeline

Public 
Communication
• CAPA launched public information campaign in November
• New section on City’s website created to be hub for all 
information. chandleraz.gov/bondelection
• Social Media posts and articles released in November

Grand Total
$272,685,00 
Parks           $72,985,000
Fire             $25,160,000
Police           $55,190,000
Facilities  $33,570,000 
Streets
$85,780,000
Citizen Bond Exploratory 
Committee Recommendation 
Maintains property tax rate

City Bond Counsel Overview

Authorize the City to borrow money for 
approved capital projects 
The foundation that Bond Counsel relies 
on to issue an unqualified opinion that 
the bonds have been duly and validly 
issued
Chandler’s bond authorization needed to 
support 10-year Capital Improvement 
Plan 
Why Do We Need An 
Election?

GO Bond Elections
• Secured by ad valorem taxes
• Order of the election by the political subdivision 
governing body (i.e., City Council) or petition 
signed by 15% of the qualified electors
• Transaction costs may come from authorized 
amount, but bond election expenses to be paid 
from current operating funds only
• Notice of election per A.R.S. 9-812 and 39-204 
(not publication)
• Election held at the regular voting places on the 
first Tuesday following the first Monday in 
November
• Publicity Pamphlet is required
• Ballot form must include certain language – for 
example, “the issuance of these bonds will result 
in a property tax increase…”
• Authorization does not expire

Publicity Pamphlets
Legal Statues of the Publicity Pamphlet
•
A.R.S. Section 35-454 requires that the purposes be listed in the 
publicity pamphlet and limits the use of bond proceeds to the 
purposes stated
•
The purposes set out in the publicity pamphlet may be different 
than the language in the ballot
Requirements
•
A.R.S. Section 35-454. Not less than 35 days before the election, 
mail to every household with a registered voter
•
Sherman v. Tempe – before the election means before early 
voting begins

Publicity Pamphlet
Substantive Content Requirements
• Amount of Bonds
• Maximum Interest Rate
• Estimated Debt Service Schedule 
for Current Outstanding Bonds
• Estimated Debt Service Schedule 
for Proposed Bonds
• Limits on assessed value 
growth assumptions
• Source of repayment
• Estimated issuance costs
• Estimated total cost (including P&I) 
– bold font
• Polling location for the addressee
•
Estimated tax impact on certain 
types of properties:
•
Residential ($250,000)
•
Commercial ($1,000,000)
•
Agricultural/Vacant ($100,000)
•
Projects and expenditures for 
which the bonds are to be issued
•
Hours during which polls will be 
open
•
Current outstanding GO debt and 
Constitutional limitation
•
Pro/con arguments

Publicity Pamphlet
Pro/Con Arguments
Governing body must specify the 
deadline to submit in the 
Resolution
Publish deadline (doesn’t say how 
to publish, so use the standard 
found in A.R.S. 39-204)
Political subdivision may charge a 
fee for arguments
(Chandler charges $150)
Overly gratuitous additions in the 
publicity pamphlet, such as 
“Purpose” or “Why this Election was 
called” must be carefully reviewed

Publicity Pamphlet
•
Within 30 days after election,  City Clerk shall submit copy of the publicity pamphlet to the 
Department of Revenue
•
All written voter information must state the tax rate necessary to support the bonds (A.R.S. 35-
454.C.)
•
Publicity pamphlets typically have more detail than the Ballot and it is in the publicity pamphlet 
where you can “explain” things and go into more detail
•
Bond Committee members can draft statements in favor of the referendum (Bond Committee to 
be sunset prior to advocacy)

Bond Election Ballot Questions

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Preparing the Ballot 
Question
Scope of Questions 
• The law prohibits “log rolling”
• Typically, there is no log rolling if there is a 
common nexus among the items presented 
and the law has not divided the issues in 
other contexts

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Preparing the Ballot 
Question
Purposes vs. Projects
•
Must be broad enough in scope to cover all expenditures expected to 
be made
•
Need enough specificity so the voter can’t claim “fraud in the 
inducement”
•
Examples, construct vs. improve; expand vs. renovate; equipment; 
financial costs; lease and acquire
Dollar sizing
•
Construction estimate
•
Inflation
•
Incidentals
•
Amount authorized may exceed the current debt capacity
•
Ballot form must include certain language – for example, 
“the issuance of these bonds will result in a property tax 
increase…”

Municipal 
Facilities Bonds
QUESTION 1
PURPOSE:  Municipal Facilities Bonds
AMOUNT:  $33,570,000
Shall the Mayor and Council of the City of 
Chandler, Arizona, be authorized to issue and 
sell the following bonds of the City:
Purposes:  To construct, improve, renovate, 
replace and remodel municipal buildings and 
critical infrastructure related thereto; to 
furnish and equip such facilities and improve 
the grounds thereof.

Park and Recreation 
Improvements/
Community Services Bonds
QUESTION 2
PURPOSE:  Park and Recreation Improvements/ 
Community Service Bonds
AMOUNT:  $72,985,000
Shall the Mayor and Council of the City of 
Chandler, Arizona, be authorized to issue and 
sell the following bonds of the City:
Purposes:  To construct, improve and acquire 
community, neighborhood, regional and aquatic 
parks, including recreational facilities, buildings 
and improvements; to acquire land for parks, 
recreational facilities, buildings and open 
spaces; to make improvements, additions and 
replacements to existing parks and recreational 
facilities and buildings; to landscape, furnish 
and equip existing and new parks and 
recreational facilities and buildings

Public Safety/Fire 
Bonds
QUESTION 3
PURPOSE:  Public Safety/Fire Bonds
AMOUNT:  $25,160,000
Shall the Mayor and Council of the City of 
Chandler, Arizona, be authorized to issue and 
sell the following bonds of the City:
Purposes:  To construct, improve, renovate 
and remodel fire stations and other fire safety 
related facilities; to furnish, equip and 
improve fire stations, fire safety related 
facilities and radio infrastructure; and to 
acquire vehicles and land for fire and public 
safety purposes

Public Safety/Police 
Bonds
QUESTION 4
PURPOSE:  Public Safety/ Police Bonds
AMOUNT:  $55,190,000
Shall the Mayor and Council of the City of 
Chandler, Arizona, be authorized to issue and 
sell the following bonds of the City:
Purposes:  To construct, improve, renovate 
and remodel police stations and other police 
related facilities; to furnish, equip and 
improve police stations, police related 
facilities and radio infrastructure; and to 
acquire vehicles and land for police and 
public safety purposes

Public Works/Street 
and Transit 
Improvements Bonds
QUESTION 5
PURPOSE:  Public Works and Street and 
Transit Improvement Bonds
AMOUNT:  $85,780,000
Shall the Mayor and Council of the City of 
Chandler, Arizona, be authorized to issue and sell 
the following bonds of the City:
Purposes:  To design, acquire, improve, construct, 
reconstruct and rehabilitate the streets, avenues, 
alleys and highways of or within the City; to 
design, acquire, install, construct and reconstruct 
street lighting, traffic signal/control systems, 
underground utility lines, landscape improvements 
and transit/bicycle program improvements, 
including shared use paths and trails; to acquire 
land and interests in land for transportation 
purposes

A.R.S. required 
ballot language for 
payment of bonds
Each series of these bonds will be issued at the 
option of the Mayor and Council as general 
obligation bonds of the City pursuant to Title 35, 
Chapter 3, Article 3, Arizona Revised Statutes, 
payable from the levy of an ad valorem tax against 
the taxable property located within the City, and the 
issuance of these bonds will result in a property tax 
increase sufficient to pay the annual debt service of 
the bonds, unless the Mayor and Council provide for 
payment from other sources

• Advocacy vs. Education
• Objective test, not based on the subjective state of 
mind of the actor
• The prohibition applies before a measure qualifies for the ballot and 
throughout the election process
• The legal test is whether the activities unambiguously urge a person to 
vote in a particular manner 
• City resources cannot be used for advocacy, but may be used for 
education
• Staff can volunteer time but cannot be compelled to work on 
campaign or work on campaign on the clock
• Impartial, content neutral information has been 
allowed, but the courts will look to the style, tenor 
and timing of the activity
25
Government Resources Influencing 
the Outcome of an Election

• Normal non-partisan “get out to vote or register” 
activities are permitted
• 2000 and 2004 Attorney General Opinion allows the answering of 
frequently asked questions and an analysis of the financial impact of 
the ballot measure
• Can’t have pictures of town’s police cars, etc. - in ‘vote yes’ campaign 
material
• State and federal prosecution possible if government 
funds are used
• Federal case - wire fraud theft is a result of using program funds from 
a program receiving federal funds
26
Government Resources Influencing 
the Outcome of an Election

What Can Council Members Do?
CAN NOT direct 
staff to work on 
campaign or 
advocate
CAN NOT use city 
resources such as 
phones, computers, 
email
CAN NOT use city 
funding
CAN advocate on 
behalf of the bond 
questions with their 
own resources
CAN attend and 
speak at election 
events
CAN urge citizens to 
vote yes and talk 
about benefits, 
including via personal 
social media
CAN write letters 
and volunteer on a 
bond campaign 
committee

What Can Staff Do on Their Own Time?
CAN NOT advocate for 
the passage of the 
bond questions on 
paid time or in their 
capacity as a City 
employee
CAN NOT direct staff 
to work on campaign
CAN NOT use city 
resources such as 
phones, computers, 
email
CAN urge citizens to 
vote yes 
CAN talk about 
benefits
CAN write letters and 
volunteer on a bond 
campaign committee

Bond Election Education Plan 
of Action

City Role to Educate
• Education vs. Advocacy
• Factual in nature
• Inform and encourage voter participation
• Submittal of pro/con arguments
• “Vote by Mail” process
• Series of videos
• What are bonds?
• What are they used for?
• Past bond funded projects
• Illustrative examples of proposed bond 
projects
• Series of printed documents
• Digital – website & social media
• Create Bond Election Summary and 
fact sheets for public distribution

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Date 
Description 
February 25, 2021
Citizen Bond Exploratory Committee Executive Summary completed and briefing by 
Steering Committee Chair at City Council Work Session 
February 25- April 30, 2021
City Council discussion of recommendations 
May 27, 2021
By resolution, the City Council Calls for an Election and approved ballot language 
June 16, 2021
Bond Election education begins
June 18, 2021
Ballot language submitted to Maricopa County 
August 4, 2021
Deadline to file Pro/Con with City Clerk
September 20, 2021
Sample Ballot / Publicity Pamphlet mailed to voters before election
October 4, 2021
Last day for voters to register for election 
October 6, 2021
First day to mail out ballots in the “Vote by Mail” election 
November 2, 2021
Election Day 
November 22, 2021
Deadline for City Council to canvass the election 
Next Steps

Questions?
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