| ITEM #: 15. DATE: 06/22/2026 AI #:3203 |
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CITY COUNCIL ACTION REPORT
| SUBJECT: | RESOLUTION AUTHORIZING THE ISSUANCE OF GENERAL OBLIGATIONS BONDS FOR STORM SEWER AND DRAINAGE, STREET AND TRANSPORTATION IMPROVEMENTS, PUBLIC SAFETY, AND PARKS AND RECREATION IMPROVEMENTS |
| STAFF PRESENTER(S): | Mayette Bailey, Interim Deputy Director of Finance |
SUMMARY
Resolution No. 2026-2528, included here as Attachment A, authorizes the sale, issuance and delivery of the City of Goodyear, Arizona, General Obligation Bonds, Series 2026 (“Bonds”).
STRATEGIC PLAN ALIGNMENT
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RECOMMENDATION
Adopt Resolution No. 2026-2528 authorizing the issuance, sale and delivery of its General Obligation Bonds, Series 2026; delegating the authority to approve certain matters with respect to the bonds, including determining the method of sale of the bonds, authorizing the acceptance of a proposal for the purchase of the bonds and awarding the bonds to the purchaser thereof; providing for the annual levy of a tax for the payment of the bonds; authorizing the appointment of a municipal advisor and a bond registrar, transfer agent, paying agent and depository, as applicable; providing for the disposition of the proceeds of such bonds; approving the form of the bonds and certain documents relating to and securing the payment of bonds, and authorizing completion, execution and delivery thereof; delegating authority to approve and deem final a form of official statement, if applicable; ratifying all actions taken and to be taken to further this Resolution; and authorizing any necessary budget transfers related to the bonds and the projects financed thereby. (Mayette Bailey, Interim Deputy Director of Finance)
FISCAL IMPACT
Ad valorem property taxes will secure the payment of the Bonds. The issuing of the Bonds will result in a debt service payment averaging $7.3 million annually. The annual payments will be paid from the secondary property tax levy and structured to meet the Council’s adopted policy of a total tax rate (Primary and Secondary) not to exceed $1.74 per $100 of assessed value. The proceeds generated from the sale of bonds will be used to fund various projects relating to bridges, storm sewer and drainage, street and transportation improvements, pubic safety, and parks and recreation improvements, all of which have been captured as part of the FY27 budget process.
BACKGROUND AND PREVIOUS ACTIONS
Voters in the city approved the issuance of general obligation (“GO”) bonds of the city at special bond elections held on September 12, 2000, and September 7, 2004, and November 7, 2023. The city has previously issued GO bonds authorized at the respective special bond elections, and now desires to issue additional GO bonds to finance certain improvements for the public benefit of the city.
STAFF ANALYSIS
The Bonds, detailed by the Preliminary Official Statement, included here as Attachment E, will be issued at an aggregate original principal amount not to exceed $100,000,000 with a yield not exceeding 6.00%, and a maximum maturity not to exceed July 1, 2045. The Bonds are secured by ad valorem property taxes without limit as to rate or amount. However, it is estimated that the resulting total property tax rate will not exceed $1.74 in accordance with adopted financial policies.
US Bank will act as the Bond Registrar, Transfer Agent, Paying Agent, and Depository Contract detailed in the agreement included here as Attachment B. Stiefel, Nicolas & Company will serve as the Underwriter per the Bond Purchase Agreement included here as Attachment D. The city has entered into the Continuing Disclosure Certificate, included here as Attachment C, to maintain compliance with applicable bond regulations.
The issuance of the Bonds will provide funds to finance the construction, acquisition and equipping of certain public safety, transportation and street and highway improvements, bridges, storm sewer and drainage, parks and recreation improvements, and to pay for the costs of issuance of the Bonds. The Bonds were approved by the voters of the city. City staff has consulted with Hilltop Securities Inc., as financial advisor to the city, with respect to the ad valorem property tax impact related to the Bonds. City staff has reviewed the proposed issuance and sale of the Bonds, and finds that the Bonds will finance needed infrastructure for the city and the contemplated transaction is in compliance with State of Arizona law and city policies.
US Bank will act as the Bond Registrar, Transfer Agent, Paying Agent, and Depository Contract detailed in the agreement included here as Attachment B. Stiefel, Nicolas & Company will serve as the Underwriter per the Bond Purchase Agreement included here as Attachment D. The city has entered into the Continuing Disclosure Certificate, included here as Attachment C, to maintain compliance with applicable bond regulations.
The issuance of the Bonds will provide funds to finance the construction, acquisition and equipping of certain public safety, transportation and street and highway improvements, bridges, storm sewer and drainage, parks and recreation improvements, and to pay for the costs of issuance of the Bonds. The Bonds were approved by the voters of the city. City staff has consulted with Hilltop Securities Inc., as financial advisor to the city, with respect to the ad valorem property tax impact related to the Bonds. City staff has reviewed the proposed issuance and sale of the Bonds, and finds that the Bonds will finance needed infrastructure for the city and the contemplated transaction is in compliance with State of Arizona law and city policies.
Attachments
- Attachment A - Resolution No. 2026-2528
- Attachment B - Draft Registrar Contract
- Attachment C - Draft Continuing Disclosure Certificate
- Attachment D - Draft Bond Purchase Agreement
- Attachment E - Draft Preliminary Official Statement
- Staff Presentation