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Maricopa council approves $30M revenue bond, moves to send $50M to ADOT for SR 347 widening
Summary
The council approved Resolution 26.06 to issue a $30 million revenue bond, combined with a $20 million Pinal County payment, to fund the city’s share of a roughly $50 million SR 347 widening project. The measure authorizes staff to complete market steps and close the transaction in late April/early May.
The Maricopa City Council on March 3 approved Resolution 26.06 to authorize a $30 million revenue bond that will fund the city’s portion of the SR 347 widening project and allow the city to remit payment to the Arizona Department of Transportation (ADOT).
Finance staffer Matthew said the bond will be paid from the new half‑cent commuting corridors sales tax and that Pinal County has agreed by intergovernmental agreement (IGA) to contribute a single payment of $20 million by May 1, 2026. Together, those funds will allow the city to make an approximately $50 million payment to ADOT under the project IGA, Matthew said.
Matthew explained that although preliminary documents list $27.1 million, a market reoffering premium is expected to produce approximately $30 million in cash to the project construction fund; the premium represents investor demand and the mechanics of the bond sale, he said. The city intends to use a 20‑year revenue bond with an accelerated principal schedule to reduce total principal and interest payments to an estimated $38.28 million, down from a more traditional $43.39 million estimate in preliminary schedules.
Council Member Ghetto moved to approve the resolution; Council Member Marsh seconded. The council voted to approve the authorization, allowing staff to complete due diligence, marketing and bond closing with an anticipated late April–early May close so funds are available to meet the ADOT payment deadline (June 1, 2026) under the IGA.
Why it matters: SR 347 is a major arterial where officials and the community have long expressed safety and capacity concerns. The approved financing accelerates the city’s ability to deliver its share of construction funds to ADOT while using dedicated sales tax revenue to service the debt.
What the documents say: The city’s presentation cites partners in the transaction — LRB (financial advisor), Stiffel (underwriter) and Greenberg Traurig (bond counsel) — and points to an online “building better roads” tracker where the city will display bond proceeds, county payments and the resulting payment to ADOT.
Outstanding details and oversight: Matthew said the city expects to receive Pinal County’s payment and to close the revenue bond with market timing that balances when funds are received and when debt service begins. The council did not amend the IGA terms during the meeting; those documents were presented as the governing schedule for payment. The city will present final bond documentation and schedules to the council and publish transaction details on its project tracker.
