Governing board sets $105 million bond maximum for upcoming election preparations

The Governing Board of Arizona has set a maximum bond program amount of $105 million, a significant step towards funding future projects. During the meeting on March 25, 2025, board members discussed the implications of this decision, which includes delegating authority to staff for preparing voter pamphlets and collaborating with the county on an intergovernmental agreement for the upcoming election.

A successful election in November will pave the way for the board to proceed with borrowing and issuing bonds, although no immediate actions will take place until the board formally decides to sell the bonds. The board will also determine the necessary tax rate to service the debt on outstanding bonds during the annual budget process.

The meeting highlighted the costs associated with holding the election and issuing bonds. While the exact expenses for the election will depend on various factors, including the number of jurisdictions involved, it was noted that odd-year elections tend to be less costly due to fewer polling place requirements. The primary cost of issuing bonds remains the interest paid back to investors, with additional fees for legal counsel and rating agencies.

Board members expressed concerns about public perception regarding the bond amount, clarifying that not all of the $105 million would be available for projects due to associated costs. However, they reassured that the net proceeds would still be substantial, with estimates suggesting that over $104.5 million could be realized after expenses.

As the board prepares for the upcoming election and potential bond issuance, they remain focused on ensuring transparency and effective communication with the community regarding the financial implications of these decisions.