The Tempe, Ariz., City Council will decide later this month on whether to send a $29.8 million general obligation bond program to voters in November. The council gave its preliminary go-ahead to the plan last week.

The proposal includes $10.5 million to replace an inflatable bladder dam at Tempe Town Lake that failed in 2010, draining the lake of about 1 billion gallons of water.

Financing for the new $37.4 million steel dam project will include the proposed 2012 GO proceeds, $4 million in cash, and $25 million of unissued GO bond authorization previously dedicated to park projects.

The proceeds would also provide $12.9 million of street repairs and $6.4 million of public-safety facility upgrades.

The GO bonds will be supported by Tempe’s secondary property tax rate of $1.79 per $100 of assessed value. The council is considering an increase in the rate to $2.14 per $100.

Tempe voters approved $158 million of GOs in 2002, $210.5 million in 2006, and $241.3 million in 2008.

Tempe’s $468.2 million of outstanding GO debt is rated Aa2 by Moody’s Investors Service and AAA by Fitch Ratings and Standard & Poor’s.

Total assessed valuation in fiscal 2012 is $14.2 billion.

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