Mesa To Exhaust 2008 Bond Authorization

Mesa, Ariz. will exhaust $170 million of general obligation bonds authorized by voters in 2008 with a $60 million sale approved by the City Council last week. Mesa will also sell $17.3 million of GO bonds from a 2012 authorization.

The city will use some of the proceeds to purchase land for a replacement fire station, but does not have the remaining capacity needed to build the facility. Funding for construction of the station is expected to be included in a GO request that could go to voters in the fall.

Mayor Scott Smith said planning for the bond issue, which would include only critical elements in the city’s $279 million, five-year capital improvements program, will began when the fiscal 2014 budget is completed in June. Smith said proceeds from the new bonds would be earmarked for public safety and street efforts.

The sale approved by the council will also include $47 million of utility revenue bonds from a $202 million referendum approved by voters in 2010.

Mesa’s $290 million of outstanding GO debt is rated Aa2 by Moody’s Investors Service and AA by Standard & Poor’s.

Assessed property valuation in Mesa totaled $22.4 billion in 2013, down from $25.5 million in 2012. Valuation peaked in 2009 at $37.6 billion. City officials said they do not expect valuations to drop in 2014.

Mesa voters approved a secondary property tax to support the 2008 bonds, the first time the GO debt service tax was levied in the city since 1945. Mesa supports debt issued before 2008 from the general fund.

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Arizona
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