Favorable Yields, Scottsdale’s Top Credit Scores Provide Smart Financial Sense for Scottsdale Voters to Approve Infrastructure Repairs, Investments in Public Safety, Senior Centers
(SCOTTSDALE) — As the Bond Market has shifted, this has become the perfect moment for Scottsdale voters to approve bonds and their investments in our community.
Questions 1, 2 and 3 on this November’s ballot will expand senior centers, make overdue infrastructure repairs and improve public safety facilities for our first responders.
The bonds also make smart financial sense for Scottsdale taxpayers.
Municipal Bond Yields have dropped sharply, now well below 2%. They are expected to continue to drop. That will save Scottsdale significant money if voters approve the three bond questions.
Scottsdale will be able to lock in extremely low long-term rates as those funds are used to rebuild and restore our City. For example, a 250-basis point change in the bond yield translates into more than a $7.5 million annual reduction in the forecasted bond interest expense on the $300 million of bonds to be sold.
Secondary property taxes fund the City’s General Obligation bonds (other than the Preserve Bonds which are paid from the special sales tax voters approved twice). Secondary Property Tax Rates are now all but certain to continue their six year decline even if Questions 1, 2 and 3 are approved by Scottsdale voters in November.
Secondary Property Tax Rates will continue to drop as a combination of these factors:
– The City pays off over $30 million a year of bonds issued long ago
– Property Values have gone up
– New construction has added to our tax base
– And now interest rates have dropped far below the expectations of a year ago when we first spoke about Bonds
“Scottsdale’s top score with bond rating agencies, the lower bond yields and the expected decline in secondary property tax rates make this the perfect time for voters to approve the investment in the future of Scottsdale,” said Mike Norton, co-chair of the For The Best Scottsdale: Vote Yes on Questions 1, 2 and 3.
Scottsdale voters have not approved a major bond program since 2000. Our community has infrastructure that is literally crumbling, and needs repaired. The bonds will fix the dam and leaking lakes at the south end of Indian Bend Wash and complete repairs to Civic Center Plaza after Drinkwater Boulevard had to be closed for emergency repairs.
“As a former member of the Scottsdale City Council, I see how the bonds make financial sense for taxpayers. The bonds invest in Scottsdale’s quality of life and future prosperity. They will expand senior centers, build new fire stations and parks and renovate the City Jail and training facilities for our first responders. Our timing couldn’t be better,” said Dennis Robbins, co-chair of the For the Best Scottsdale campaign.
Supporters of Questions 1, 2 and 3 include a unanimous Scottsdale City Council as well as the Scottsdale Area Chamber of Commerce, Scottsdale Area Association of Realtors, Coalition of Greater Scottsdale, Barrett-Jackson, the Scottsdale Charros, The Thunderbirds, Arabian Horse Association of Arizona, Arizona Quarter Horse Association, gallery owners, tourism leaders, neighborhood advocates, youth sports groups, the Police Officers of Scottsdale Association, Scottsdale Fire Fighters Association, arts community leaders and many others.
All the bond projects can be seen here: https://www.scottsdaleaz.gov/elections/bond-2019-project-list