Buckeye’s first general obligation bond since 1987 has arrived with its first issuance of $75 million scheduled for the end of June.
In the Nov. 5, 2024 election, Buckeye residents approved a total of $282 million in bonds including $137 million for public safety, with a nearly 63% approval rate, and $145 million for streets and transportation upgrades, with a nearly 65% approval rate. The bond’s principal is not to exceed $75 million with a max bond yield rate of 8%. The debt is to be repaid through a secondary property tax, not to exceed $2.25.
“It’s kind of exciting now that we have voter approval,” said Chief Financial Officer William Kauppi. “Now we can actually go out and issue some bonds.”
The first issuance of $75 million is slated for the following projects:
Public safety:
- Construction of the new Westpark Fire Station
- Construction of the new Victory Fire Station
- Construction of the new Public Safety Headquarters
- Construction of the new Public Safety Training Facility
Streets and Transportation
- Widening streets to eliminate bottlenecks
- Rehabilitating damaged roads
- Widening Indian School Rd. from Jackrabbit to Perryville
- Installing lighting along Sun Valley Pkwy. near the Tartesso and Festival neighborhoods.
The second issuance of approximately $110 million is estimated for June 2029. The third and final of approximately $97 million is estimated for June 2033. The bond is on a 25-year issuance timeline, with the first three installments being paid off by the end of 2053. Afterward, further available funds under the $2.25 tax rate will allow room for future bond issues.
Residents can expect to see their tax rates change on June 17 at a $0.65 increase from $1.60 to $2.25. Over the life of the bond, that number may fluctuate slightly, Kauppi said, however, it is never to exceed $2.25.
“After that, then, it’s going to be level for the rest of the time,” Kauppi explained. “Now, it may fluctuate a little bit—$2.24—you never know, but it’ll never increase above $2.25.”
The first-year cost impact is estimated at $115 for the average single-family residential property in Buckeye assessed at $176,839. Residents can calculate their rate through the following formula: Limited property value/100 x 0.65. For example: $226,597 / 1,000 x 0.65 = $148 per year. Find your property’s value at www.mcassessor.maricopa.gov. You can also use the city’s rate calculator here.
“Go sell bonds,” Mayor Eric Orsborn said at the conclusion of the meeting. “Let’s go build some roads.”
Learn more information about the bond issuance HERE.
Watch the full city council meeting HERE.
