Buckeye council authorizes immediate $75 million in voter‑approved general obligation bonds

The Buckeye City Council voted unanimously on May 6 to authorize the city to issue $75,000,000 of voter‑approved general obligation (GO) bonds as the first tranche of a larger $282,000,000 program.

Finance staff told the council the first issuance will be repaid through a secondary property tax and officials expect to close the first sale in June. William Coppi, finance staff, told the council, "with your approval tonight, basically finance staff will move forward with issuing $75,000,000 of voter approved, GO bonds." He also said one rating agency had just rated the city "AAA," a designation he called beneficial for lowering interest costs.

Why it matters: the bonds will fund projects listed in the city’s capital improvement plan and are supported by voter approval earlier this year. City officials said they plan to keep the combined primary and secondary tax rate at or below $2.25 and that the debt service will be paid by the city’s secondary property tax levy.

Key facts: the $75 million is the first of up to three planned issuances that together match the $282 million voter authorization. Officials described a tentative schedule that would place a second issuance of about $110 million in 2029 and a third issuance in 2033 if assessed values and market conditions proceed as projected. Coppi said the city will not exceed 25‑year maturities for the bonds and does not expect yields to approach the 8% ceiling mentioned in the resolution materials.

Council members asked operational questions about public access and taxpayer responsibility. Councilman Kovan asked if taxpayers would only pay debt service on the $75,000,000 and not the full $282,000,000; Coppi replied, "That is only paid by the secondary property tax by the residents or residents within the city of Buckeye." Another council member asked whether individual residents could purchase portions of the bonds; Coppi said individuals can buy through the city’s underwriting firm and noted a typical minimum purchase is $5,000.

Additional details from the presentation: staff said the city’s projection of assessed value growth used a conservative 9.3% annual increase for planning; the median residential impact in the first year was estimated at about $115 annually on a median home with a limited property value of $176,000. Officials noted that commercial and agricultural properties use different assessment ratios. The council voted to approve agenda item 5A, effectively authorizing the finance team to proceed with the first bond issuance and related documents. The city manager and finance staff said formal adoption of tax rates is scheduled for a future council meeting (June 17) prior to closing.

What’s next: staff will work with the city’s financial adviser, underwriter and bond counsel to finalize sale documents and return with the formal tax‑rate ordinance and closing resolutions. Residents interested in purchasing bonds were told to contact the underwriting firm, Stifel, for account setup and purchase procedures.