Council declares intent to reimburse capital spending from future bonds after 2023 voter authorization

The Surprise City Council unanimously approved Resolution 2025-45 Tuesday, declaring the city's official intent to reimburse certain capital expenditures with proceeds from future bond issuances if and when those bonds are sold. Assistant Finance Director Eric Martin briefed the council on timing and fiscal strategy. Martin said voters approved $100 million in bonds on Nov. 7, 2023 — $66 million for transportation projects and $34 million for public-safety projects — and the city issued roughly $27 million in September 2024 to limit tax-rate impacts. He said the resolution does not obligate the city to issue more debt or change tax rates; instead, it preserves the city’s ability to pay eligible project costs now and later reimburse those costs from future bond proceeds while complying with IRS and SEC rules. Council members praised the fiscal planning. The resolution gives the city timing flexibility to sequence projects and manage debt-service impacts while the remaining authorized bond capacity is held for future issuance. Why it matters: Declaring intent to reimburse allows the city to start bond-eligible capital work now and use the statutory reimbursement mechanism to pay eligible expenditures from later bond proceeds, subject to federal tax rules and future council approvals. What happens next: No immediate bond issuance was approved. Staff will follow IRS/SEC guidance when planning any future bond sales and will return to council with any future issuance proposals.