Resolution No. 2022-2223 authorizes the sale, issuance and delivery of not to exceed $26,040,000 aggregate original principal amount of the City of Goodyear, Arizona, Obligation Bonds, Series 2022 (“Bonds”).

ADOPT RESOLUTION NO. 2022-2223 AUTHORIZING THE ISSUANCE AND SALE OF CITY OF GOODYEAR, ARIZONA, GENERAL OBLIGATION BONDS, SERIES 2022; DELEGATING THE AUTHORITY TO APPROVE CERTAIN MATTERS WITH RESPECT TO THE BONDS; PROVIDING FOR THE ANNUAL LEVY OF A TAX FOR THE PAYMENT OF THE BONDS; APPOINTING A REGISTRAR AND PAYING AGENT FOR THE BONDS; APPROVING THE FORM OF CERTAIN DOCUMENTS AND AUTHORIZING COMPLETION, EXECUTION AND DELIVERY THEREOF; DELEGATING THE AUTHORITY TO APPROVE AND DEEM FINAL A FORM OF OFFICIAL STATEMENT; RATIFYING ALL ACTIONS TAKEN AND TO BE TAKEN WITH RESPECT TO THE BONDS IN FURTHERANCE OF THIS RESOLUTION; AND AUTHORIZING ANY NECESSARY BUDGET TRANSFERS RELATED TO THE BONDS AND THE PROJECTS FINANCED THEREBY. (Jared Askelson, Finance Manager-Financial Services)

Ad valorem property taxes will secure the payment of the Bonds.  The issuing of the Bonds will result in a debt service payment averaging $1.7 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 $26,040,000 generated from the sale of bonds will be used to fund the Renovation of Fire Station 183, Phase II of the Police Administrative Building, and Camelback Road-State Route 303 to 152nd Avenue.

The Bonds will be issued in an aggregate original principal amount not to exceed $26,040,000, with a yield not exceeding 5.00%, and a maximum maturity not to exceed July 1, 2042.  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.

The issuance of the Bonds will provide funds to finance the construction, acquisition and equipping certain public safety, fire protection, transportation and street and highway improvements to pay 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.