Title
An Ordinance Authorizing the Issuance of General Obligation Bonds (Ordinance S-50520)
Description
Requests City Council approval of an ordinance to authorize the City Manager, or his designee, the issuance of one or more series of various purpose general obligation bonds not to exceed the principal amount of $500,000,000 to provide funding for fire, police, roadway and pedestrian infrastructure projects; library, parks and historic preservation projects; education, economic development, reducing waste, resource management, arts and culture projects; affordable housing and senior center projects. Further this request authorizes the City Controller to receive and expend all necessary funds related to this item.
Report
Summary
On Dec. 13, 2022, after an extensive community input based process, the Phoenix City Council approved a $500,000,000 general obligation bond program ("2023 GO Bond Program"). On May 3, 2023, the Phoenix City Council ordered and called a special bond election and approved the form of ballot for the 2023 GO Bond Program. On Nov. 7, 2023, Phoenix voters approved all four questions related to the 2023 GO Bond Program. This ordinance provides authorization to issue obligations in one or more series not to exceed $500,000,000 principal amount, plus related financing costs to acquire, construct, expand and improve real and personal property.
The generated funds will be used to pay for all necessary design, construction, reconstruction, improvement, repair, renovation, equipment, and associated costs, including the acquisition of land or interests necessary for such purposes, all legal, financial, consulting, and other costs and fees in connection therewith. The debt will be supported by property taxes to pay financing costs; the ordinance grants an exemption to Phoenix City Code section 42-18 to include indemnification and legal remedy limitations.
Financial Impact
The City will levy secondary property taxes for the repayment of the obligations.
Department
Responsible Department
This item is submitted by City Manager Jeffrey Barton and the Finance Department.