Mohave Today

CHANDLER, Ariz. - At its Oct. 19 regular meeting, the Chandler City Council approved the sale of up to $195 million in bonds - $120 million in general obligation bonds approved by voters and $75 million in excise tax revenue obligations which are paid for with utility revenues.

Each year, the City’s Capital Improvement Program (CIP) is reviewed and updated, based on available bond authorization, strategic plans, community needs and available funding. General Obligation bond debt financing was planned for certain capital projects related to streets, stormwater, parks and recreation, library, and public buildings (to address aging facilities), as well as police and fire for related public safety improvements.

This bond sale will use a portion of the bond authorization in each of these categories to fund capital projects in process and some not yet started for FY 2023-24, which will allow departments to continue the many projects needed to maintain and improve the community.

Through decades of strong leadership and responsible spending, Chandler has become one of the most financially stable cities in America; one of only a few cities nationally with Triple A Bond Ratings from all three rating agencies.

These high bond ratings are a positive reflection on Chandler's financial management and its ability to repay outstanding debt. The higher bond ratings also represent a lower investment risk for potential bond buyers and lower debt costs for the city and its residents.

The principal and interest on the general obligation bonds will be repaid from secondary property taxes based on the rate of $0.87 per 100 in assessed valuation. This sale was planned and does not require an increase in the tax rate.

Prior to the sale, the rating agencies will again review Chandler's financial strength and provide a rating update based on the level of risk for a purchaser of Chandler's bonds. That rating directly correlates to the cost of selling those bonds.

The next meeting of the Chandler City Council will be at 6 p.m. Monday, Nov. 6, 2023. Council meetings are aired live, as well as replayed on the Chandler Channel - Cable Channel 11 and streamed online at Chandler Video. Select Public Meeting Archive.

For official meeting results and minutes for each City Council meeting, visit City Council Meetings & Agendas.

Original source can be found here.