Scottsdale council approves $107 million general obligation bonds and $120 million MPC excise‑tax debt

Scottsdale City Council on March 18 approved two financing measures to fund capital work: a third general obligation (GO) bond issuance for the 2019 bond program and Municipal Property Corporation (MPC) excise‑tax debt for water and wastewater projects.

The GO issuance covers projects authorized in the 2019 bond questions, including park site acquisitions and construction, public parking improvements in Old Town and police and fire facility renovations. Staff presented the borrowing plan and said the city’s secondary property‑tax rate is expected to remain relatively flat — the operating assumption showed an estimated secondary tax rate of about 42.5 cents per $100 of assessed value following the issuance — and that the city layers debt service to avoid large year‑to‑year spikes. The city anticipated posting a preliminary official statement in April, selling the bonds in late April and closing in mid‑May.

Separately, the council approved MPC excise‑tax bonds (a conduit financing secured by excise taxes) totaling $120 million for water and wastewater projects. Staff identified major projects included in the financing: sewer system upgrades (Greenway Hayden Loop, Mayo improvements) and water projects (Crossroads East, Aqua For storage and Frank Lloyd Wright booster improvements). Staff said the MPC coverage tests would remain comfortably above covenant and rating targets; the projected coverage ratio remained well above levels needed to maintain strong ratings.

Both issuances were brought as consent/finance items and approved by the council. Staff said proceeds will be available after the anticipated late‑April sale and May closing dates.

Ending Treasury staff and MPC board members will continue transaction steps (preliminary official statements, competitive sale and closing) and will return routine transaction documentation as required. Council members asked questions about rating, interest rates and timing; staff said they expected favorable market conditions at the time of sale.