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Maricopa County approves short-term debt plan to fund $530 million in capital projects
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Summary
The Board of Supervisors approved two short-term financings to support roughly $530 million in capital spending through FY 2029, using certificates of participation secured by county real estate and $200 million of pledged‑revenue obligations backed by state shared sales tax and vehicle license tax. Officials said repayment is expected within 1–3 years.
The Maricopa County Board of Supervisors on Wednesday approved a short‑term financing package to fund about $530 million in capital projects through fiscal year 2029.
County Chief Financial Officer Mike McGee told the board the county plans two issuances: certificates of participation secured by pledged real estate (the South Court Tower) and a $200 million pledged‑revenue obligation backed by state shared sales tax, including vehicle license tax revenues. “We’re looking at short term repayment terms, between 1 to 3 years,” McGee said, adding that money the county has set aside and investment earnings will likely offset interest costs.
The financing is intended to let the county proceed with capital projects without exceeding Arizona’s voter‑approved expenditure limit, McGee said. He described the arrangement as necessary because cash purchases of capital projects would count against the limit; issuing debt keeps the projects outside that cap. Bond adviser Bill Davis said the ultimate interest rate will be set at bid time but that the county has capped the maximum at 5.5 percent; he added his expectation that the actual rate will likely be below 4 percent.
County bond counsel described the certificates of participation as lease‑style obligations secured by a ground lease on the South Court Tower. Counsel said the certificates are subject to annual appropriation and historically Maricopa County has used short maturities for such instruments. For the pledged revenue obligations, counsel said bondholders would have rights to the pledged revenues to ensure timely debt service.
McGee told supervisors the county already has funds to make the payments and expects to repay within the one‑to‑three‑year window. The board voted unanimously to approve the resolutions authorizing the two financings.
What happens next: county staff will move forward with the bidding and sale process and return with final terms once bids are received.
