Chandler staff outlines $380M in proposed bond sales to fund water, roads and public safety projects

Finance staff presented two proposed debt authorizations during the Nov. 10 study session: Resolution 59-46 would authorize sale of excise-tax revenue obligations (ETRO) not to exceed $205,000,000, with pledged repayment from excise taxes and debt service funded by utility revenues; Resolution 59-47 would authorize sale of general obligation (GO) bonds not to exceed $175,000,000, repaid by secondary property taxes.

Matt Dumdar, presenting for finance, said bond funding supports roughly 70% of projects in the capital-improvement program, including water-treatment improvements, water-main replacements, sanitary sewer work, the San Tan Freeway redundant 66-inch sewer line, Ray/ Dobson intersection improvements, Kyrene Road improvements, Alma School Road improvements, park upgrades, traffic management center improvements and a forensic services facility for the police department.

"Resolution 59-46 authorizes the sale not to exceed $205,000,000 of ETRO bonds," Dumdar said. "Resolution 59-47 authorizes the sale not to exceed $175,000,000 of GO bonds." He added the GO sale "will not impact the secondary tax rate remaining flat at 87 cents per $100 of assessed value." Finance staff said the bonds will be rated and sold in January after December rating work; staff said they are targeting interest in the mid-3% range and cited a 3.6% target while noting a lower outcome would be preferable.

Council members asked about timing and expected interest rates; staff replied sales will occur in January following rating activity in December and reiterated project lists and the pledge sources for repayment.

Next steps: staff will complete rating work in December and return with sale details and final pricing when bonds are marketed in January.