| ITEM #: 24. DATE: 08/29/2022 AI #:918 |
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CITY COUNCIL ACTION REPORT
| SUBJECT: | CREATION OF THE 2023 CITIZEN BOND EXPLORATORY COMMITTEE TO REVIEW AND IDENTIFY PROGRAMS REQUIRING FINANCING AND TO MAKE RECOMMENDATIONS TO THE COUNCIL REGARDING THE USE OF BOND FINANCING |
| STAFF PRESENTER(S): | Doug Sandstrom, Finance Director |
SUMMARY
A bond election is the means by which the residents of the City of Goodyear provide authorization for the City to issue bonds to fund large capital projects that are part of well-defined Capital Improvement Programs and Masterplans. Bonded debt is the primary mechanism established by state statute that enables municipalities to build, maintain, and replace public assets and infrastructure. The City of Goodyear issues tax-exempt bonds as part of a comprehensive capital program to fund these projects. Although not required by state law, the establishment of a Citizens Committee is reflective of our desire to promote and develop community outreach for the use of bonds for financing of City programs in a manner that is inclusive and representative of the needs and desires of Goodyear's citizens.
Recommendation
ADOPT RESOLUTION NO. 2022-2265 ESTABLISHING A CITIZEN BOND EXPLORATORY COMMITTEE TO REVIEW AND IDENTIFY PROGRAMS REQUIRING FINANCING AND TO MAKE RECOMMENDATIONS TO THE COUNCIL REGARDING THE USE OF BOND FINANCING; PROVIDING FOR TERMINATION OF THE CITIZEN BOND EXPLORATORY COMMITTEE; ADOPTING BY-LAWS FOR THE CITIZEN BOND EXPLORATORY COMMITTEE; AUTHORIZING STAFF TO TAKE ALL ACTIONS NECESSARY TO CARRY OUT THE INTENT OF THE RESOLUTION AND BY-LAWS; AND ESTABLISHING AN EFFECTIVE DATE. (Doug Sandstrom, Finance Director)
FISCAL IMPACT
There is no direct budget impact associated with the adoption of this Resolution.
BACKGROUND AND PREVIOUS ACTIONS
The City of Goodyear has held Bond Authorization elections four times in the last forty years, receiving authorization for a total of $342.3 million. The last bond election was held in 2004 and we currently have $44.4 million of authorization remaining. The remaining authorization is restricted to use on Wastewater ($26.6 million) and Storm Sewers & Bridge Drainage ($17.8 million). Bond elections were held on the following dates with amount authorized shown:
Citizen's bonds committees were utilized prior to calling for the bond elections in both 2000 and 2004. The formation of a Bond Committee was evaluated in 2008 with a recommendation not to proceed with committee formation at that time.
| Bond Election | Amount | Purpose |
| May 17, 1988 | $15.5 million | Library, Municipal Buildings, Police |
| March 8, 1994 | $54.0 million | Library, Municipal Buildings, Police, Fire |
| September 12, 2000 | $138.75 million | Library, Municipal Buildings, Storm Sewers & Bridges, Police, Fire, Streets & Transportation, Water & Wastewater |
| September 7, 2004 | $134.0 million | Library, Municipal Buildings, Storm Sewers & Bridges, Fire, Parks & Recreation, Wastewater |
Citizen's bonds committees were utilized prior to calling for the bond elections in both 2000 and 2004. The formation of a Bond Committee was evaluated in 2008 with a recommendation not to proceed with committee formation at that time.
STAFF ANALYSIS
Pursuant to State law, bond authorization elections may only occur in November. To consider a potential bond authorization election in November 2023 the establishment of the 2023 Citizen Bond Exploratory Committee, a group of citizen and stakeholder volunteers operating under the authority of the proposed by-laws, will facilitate the development of a recommendation that reflects the community’s values and priorities. The by-laws charge the committee with providing advice to City staff and a recommendation to the City Council on matters related to the use of bond financing. To facilitate the Committee’s work, and to encourage additional public participation, the City staff, Bond Attorneys, Financial Advisors and marketing professionals will present to and work with the Committee in the formulation of their recommendation.
Under the proposed by-laws, the 2023 Citizen Bond Exploratory Committee will consist of up to 15 members and two alternates appointed by the City Council. The alternates would be entitled to participate but not vote. If a vacancy on the Committee should occur, then one of the alternates would be appointed as a voting member. To ensure that the recommendation to Council reflects the community’s values, the proposed by-laws limit the number of non-Goodyear residents to no more than three (3). The members that are not Goodyear residents must meet certain criteria, which are intended to ensure that the members have a long-term commitment to the community (i.e. a non-resident who owns and operates a business in Goodyear).
The Citizens GO Bond Committee will cease to exist on May 31, 2023 in advance of any Council action to call for an election. Once an election is called by the City, the City may not advocate for or against the ballot item.
Under the proposed by-laws, the 2023 Citizen Bond Exploratory Committee will consist of up to 15 members and two alternates appointed by the City Council. The alternates would be entitled to participate but not vote. If a vacancy on the Committee should occur, then one of the alternates would be appointed as a voting member. To ensure that the recommendation to Council reflects the community’s values, the proposed by-laws limit the number of non-Goodyear residents to no more than three (3). The members that are not Goodyear residents must meet certain criteria, which are intended to ensure that the members have a long-term commitment to the community (i.e. a non-resident who owns and operates a business in Goodyear).
The Citizens GO Bond Committee will cease to exist on May 31, 2023 in advance of any Council action to call for an election. Once an election is called by the City, the City may not advocate for or against the ballot item.