Bond ratingThe City issues debt in the form  of bonds in order to finance long-term  capital improvements such as streets, buildings, utility systems, etc. Bond funds cannot be used to fund City operations such as employee salaries, police vehicles or personal computers. The financed assets should also have at least the same useful life as it would take to repay the bond (e.g., a building would qualify, but a vehicle would not). Issuing bonds allows the City to meet infrastructure needs while paying for the assets as they are used. Because municipal bonds are typically tax-exempt, they usually carry a lower interest rate than other types of funding, and are therefore an attractive source of financing. 

The City uses two main types of bond funding : General Obligation and Utility System Revenue bonds. The ratings for these bonds are show above.

General Obligation (G.O.) Bonds are used for public safety, streets, parks, libraries,  etc. They are repaid primarily through secondary property tax, development impact fees, and sales tax revenue. G.O. Bonds are backed by the full faith and credit of the City.

Utility Revenue Bonds have no statutory limitations as to the amount that may be issued. Projects that use this type of funding are Gas, Water, Wastewater, Electric, and Solid Waste projects. Utility Revenue Bonds are repaid from revenues received from the customers of that particular utility.

Type of Bonds

As shown by the pie chart, the City continues to place a high priority on infrastructure investment to attract and service future development. This is also shown through the following bond programs:

2014 Utility System Bond Program (En Español) [PDF]

2013 Public Safety and Streets Bond Programs [PDF]                 

2012 Parks Bond Program

Purchasing Bonds

Residents wishing to purchase City of Mesa bonds should contact a securities broker. City bonds are not sold directly to the public. They are sold in bulk in order to receive the most favorable interest rate. 


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