Mesa council approves resolutions to sell 2025 general obligation and utility revenue bonds after public questions

Mesa City Council on March 17 approved two resolutions to authorize the issuance and sale of 2025 general obligation bonds and 2025 utility systems revenue obligations, voting unanimously to adopt both measures.

The measures were listed on the consent agenda as item 5(b), “approving resolution authorizing the issuance and sale of general obligation bonds series 2025,” and item 5(c), “approving resolution authorizing the sale, execution and delivery of utility systems revenue obligations series 2025.” Council members later took a separate motion to consider and approve those two items together; the motion passed unanimously.

The vote followed detailed public questions about how the bond proceeds will be used. Resident David Winstanley asked how the proposed sale relates to voter-approved bond questions in November and whether proceeds would be used to cover negative balances on prior debt proceeds. A city staff member, Brady, said the presentation provided to council — which the city will make available to the questioner — shows that some of the proceeds being sold will reimburse projects dating back to 2018 that are under construction or recently completed. "What you'll find in there is that these proceeds that are being sold are covering projects that go clear back to 2018," Brady said, adding that reimbursements reflect the timing of projects and the effect of construction inflation and COVID-related pauses.

On whether utility bond sales will require a rate increase, Brady and other staff said long-term utility rate projections shared previously with the council already anticipate much of the future debt service for water and sewer infrastructure and that issuance timing is coordinated with project readiness. Brady said the presentation and the council packet include charts showing historical payments and long-range projections across 20–30 years. He said the additional debt sales "do not count towards the transfer amount" used for certain internal budget transfers and that anticipated rates have been modelled to smooth future payments.

Council procedure and the vote

Mr. Christopher read the consent agenda, which included both bond resolutions. After taking items 5(b) and 5(c) off the combined consent motion for separate consideration, the council approved both resolutions together. A motion to approve the two items was made by "Miss Billsbury" and seconded by "Miss Duff." The mayor called for the vote; council members responded "aye," and the mayor stated the motion passed unanimously.

What staff said is available to the public

Staff told the questioner that the slide deck used in the council presentation and the detailed council report contain line-item information showing which projects are being financed or reimbursed and in which years. Staff also said the city delays issuing bonds until projects are ready so it can time sales with cash needs.

Next steps

The city will proceed with the sales authorized by the resolutions; staff said more detailed documentation and the presentation that breaks out projects and years is available in the council packet and a recent study session presentation. No further council action on these specific resolutions was recorded at the March 17 meeting.