2006 Bond Program

Scheduling the 2006 Bond Program

In scheduling projects over the five-year life of the 2006 Bond Program, it is important to point out three significant constraints. First, the large size of the bond issue - $878.5 million – was possible only because it was a relatively “back loaded” program. That is, the first two years of the program were assumed to be less than the last three years of the program. This allowed us to “layer in” new 2006 Bond Program debt service as the debt service for prior bond programs is reduced. This is especially critical now that our property tax levy in the first year is $808,000 less than the estimate used in the original bond committee forecast.

Second, the Operating and Maintenance subcommittee adopted operating and maintenance allowances as follows: $0 in 2006-07 and 2007-08; $2.1 million in 2008-09; $3.8 million in 2009-2010; $8.15 million in 2010-11. Increased bond project operating costs could force future cuts in existing operating programs.

Finally, the Arizona Constitution limits outstanding bond debt for combined water, sewer, lighting, open space, parks and recreational purposes to 20 percent of our secondary assessed valuation. All other combined purposes are limited to 6 percent of our second assessed valuation. While our 20 percent capacity is good, there is limited 6 percent capacity in the 2006 bond program. Keeping the bonds relatively back loaded is necessary for us to comply with the 6 percent limitation. Also, the ability to layer in new debt service also helps to cope with the 6 percent limitation. As old 6 percent bonds are retired, new 6 percent bonds can be issued.

The Arizona Legislature is considering changes in the property tax system that could reduce or postpone our ability to fund the bonds.

The project scheduling complies with all of the financial constraints described above. Moving projects up will require us to move other projects back. Also, several of the 2006 Bond Subcommittees adopted project schedules as part of their recommendations. That is, they determined how specific projects would be spread over the five-year bond program. This scheduling presented here remains consistent with those already reviewed project schedules.

Summary by Program

Summary of Operating Costs by Project

2006 Bond Program - Program Detail

Police Protection
Fire Protection
Parks, Recreation and Mountain Preserves
Libraries
Streets - Major Streets
Streets - Other Streets
Streets - Traffic Improvements
Storm Sewers
Human Services
Facilities Management
Neighborhood Services
Economic Development
Information Technology
Arts and Cultural Facilities
Convention Center
Historic Preservation
HOPE VI
Housing

Last Modified on 07/25/2006 10:02:13