General Obligation Bond Proposal

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Questions 2 and 3

What is a bond program?
A bond is a form of debt obligation that, when issued, provides local government with funds to finance large capital improvements. A bond program includes both the authority to issue bonds and a listing of the purposes for which the funds may be used. General Obligation Bond programs, such as the City of Mesa’s 2024 Bond Program, require voter approval.

What can General Obligation Bonds be used for?
General Obligation Bonds allow the City of Mesa (the “City”) to pay for major capital investments, including, for example, public safety facilities, parks and recreation facilities, streets, and cultural facilities. These investments enhance the community's quality of life or provide a public purpose. Bonds are sold to investors, and the proceeds from the sale of these bonds are used to pay for capital projects. Bond funds cannot be used for everyday operating costs for programs such as softball leagues, classes at senior centers, or police officer or firefighter salaries. Such operating expenses are paid for by annual revenue that support the City’s General Fund, such as sales tax revenue and fees for service.

How are General Obligation Bonds repaid?
General Obligation Bonds are backed by the full faith and credit of the City, which means that the City is obligated to pay back the bonds plus interest by pledging its ad valorem taxing power. As such, the City uses secondary property tax revenues to repay the General Obligation Bonds in the form of principal and interest payments. If voters approve the 2024 Bond Program, the estimated average tax rate for the proposed bond authorization is $0.2381 per $100 of net assessed limited property valuation used for secondary property tax purposes.

Who determined the projects included in the 2024 Bond Program?
The City Council ultimately approves the projects proposed in the 2024 Bond Program. Projects are identified through several means, including citizen and City Council input and staff recommendations. The projects included in the 2024 Bond Program were identified during the City’s Capital Improvement Program budget process, as well as at numerous community events and a citizen survey. The projects were then vetted through a public process with the City Council. On June 3, 2024, the City Council approved a resolution to include the 2024 General Obligation Bond proposal on the November 2024 ballot.

Will the projects included in the bond program be modified?
The projects included in the Bond Program represent the priorities of the City Council, as informed by citizen input as described above. The goal of the 2024 Bond Program is to complete the projects in a timely manner and within approved budgets. Several factors can influence a project being completed, including land acquisition cost, construction cost, and operating cost. These factors can result in a project being delayed or re-prioritized. Conversely, if costs are low, resulting in budget savings, additional projects or improvements may be possible. City Council considers all projects individually and must be approved before construction.

How large is the General Obligation Bond Proposal for 2024?
The City is proposing a 2024 Bond Program not to exceed $260 million. The 2024 Bond Program is made up of two ballot questions:

Community Safety: $90.0 million
Parks, Recreation and Culture: $170.0 million

The estimated average tax rate for the proposed bond authorization is $0.2381 per $100 of Net Assessed Limited Property Valuation

Mesa 2024 General Obligation Bond Proposal [PDF]

Question 2 - Community Safety

Enhance community safety through public safety, fire and medical, and police facilities, improvements, apparatuses and equipment and transportation improvements for safer streets for all users.

Printable Fact Sheet [PDF]

Question 2 authorizes the City to issue and sell General Obligation bonds in the principal amount not exceeding $90,000,000 to provide funding for public safety, fire and medical, and law enforcement facilities and improvements, related equipment, apparatuses, technology and communication systems, and transportation improvements for safer streets for all users, which may include, but are not limited to, projects intended to:

Public Safety Bond Summary: $90 million*

Provide Mesa Fire and medical substations - $5 million

Mesa is projecting an increase in medical related responses. Mesa Fire and Medical substations are staffed to respond to medical calls. Proposed substations will provide medical coverage in high call volume areas.

Replace and add fire apparatuses, including fire engines - $20 million

Mesa Fire & Medical Department has various types of large, specialized vehicles or apparatus to support fire personnel and meet operational needs. This project provides for the replacement of fire apparatus including fire engines that have or will have exceeded their useful life based on the Mesa Fire & Medical Department's replacement plan.

Construct and improve an emergency 911 communications center - $54 million

Modernization of aging facilities for the 911 communication center will allow for 911 call takers and dispatchers for Police and Mesa Fire and Medical departments to be in one expanded centralized location.The emergency 911 communications center will provide real time situational awareness for the intake, triaging, and processing of 911 calls and will deliver mission critical support during emergency incidents.

Expand the City’s fiber network for efficient communications- $4 million

In 2018, Mesa voters approved a Public Safety Bond to fund improvements that will increase reliability and resiliency at City public safety facilities and expand the public safety fiber network infrastructure.The City’s fiber network provides voice and data services for such applications as fire station alerting telephones, video conferences, City business applications and the regional public safety voice radio network. Due to inflation, the cost to complete the fiber network expansion has increased, and this additional funding will close out the project.

Design and construct improvements to make streets, roads and intersections safer for all users - $7 million

The City will review, evaluate, and address safety concerns related to use of the City’s transportation network by pedestrians, bicyclists, and vehicles. Individual projects will be brought back after identification and prioritization.

*Subject to change and City Council review and approval of individual projects; actual application of the $90 million of bond authorization may change depending on actual project costs at the time of City Council review and approval. Bond issuing costs are not included.

Question 3 - Parks, Recreation and Culture

Enhance recreational facilities and expand educational and cultural experiences through new and upgraded parks, aquatic centers and a children’s museum

Printable Fact Sheet [PDF]

Question 3 authorizes the City to issue and sell General Obligation bonds in the principal amount not exceeding $170,000,000 to provide funding for parks, water conservation projects in parks, aquatic centers, recreational facilities, historic properties, and a children’s museum, which may include, but are not limited to, projects intended to:

Recreation & Educational and Cultural Experiences Bond Summary: $170 million*

Construct and renovate parks, recreational facilities and playgrounds - $62 million

Mesa has a diverse and established parks and recreation system.Some of these facilities have become outdated.New park equipment and amenities will help activate these areas. Potential park playground renovations include upgrades at Carriage Lane, Woodglen, Sheepherders (Pickleball), Meadowgreen, Heritage, Agusta Ranch, and Monterey Park (Dog Park).Additionally, the City is proposing new pickleball courts at Evergreen, Rancho del Mar, Countryside, and Skyline; a new recreation center to cover the need for additional indoor recreation facilities and development and expansion of the Northeast Regional Trail System.

Water conservation improvements at City parks and park improvements - $12 million

Water is a valuable resource in Arizona. The City wants to ensure the efficient use of this commodity while maintaining top-tier parks.Water conversation projects may include but are not limited to irrigation reconfiguration and agricultural upgrades, advanced meters to implement sustainable water practices and the removal of non-functional turf.

Construct and improve new aquatic centers - $67.2 million

The City is proposing the construction of two new aquatic centers.The City has identified a need for aquatic programming in the southeast area and is proposing construction of a new facility.Additionally, due to aging infrastructure, the City has identified the need to demolish the Fremont aquatic center and replace it with a new location.

Renovate and improve the historic Sirrine House property - $5 million

By activating the downtown and preserving City history, the City is proposing the renovation of the Sirrine House. The updated space may include new event space, farmland, a dining area, and infrastructure updates, as well as upgrades to the Sirrine House.

Construct, renovate and improve the i.d.e.a. Museum - $20 million

In 2018, Mesa voters approved a Parks and Culture Bond which included $5.0 Million for phase 1 and 2 of renovations at the i.d.e.a Museum which included updating the lobby, restrooms, administrative support offices, storage, and constructing a new exhibit and the i.d.e.a lab. These updates are projected to be completed in late 2024. For the 2024 bond, the City is proposing phase 3 to the project which may include but is not limited to renovating and constructing the art gallery, the experience gallery, the i.d.e.a. studio, the imagination gallery, and classrooms.