Bonds

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Bond ratingThe City issues debt in the form of bonds in order to finance long-term capital improvements such as streets, buildings, utility systems, etc. Bond funds cannot be used to fund City operations such as employee salaries, police vehicles or personal computers. The financed assets should also have at least the same useful life as it would take to repay the bond (e.g., a building would qualify, but a police sedan would not). Issuing bonds allows the City to meet infrastructure needs while paying for the assets as they are used. Because municipal bonds are typically tax-exempt, they usually carry a lower interest rate than other types of debt, and are therefore an attractive source of financing. 

The City uses two main types of bond financing: General Obligation and Utility Systems Revenue bonds. The ratings for these bonds are show above.

General Obligation (G.O.) Bonds are used to finance public safety, street, park, library, and storm sewer projects. They are repaid primarily through  secondary property tax, development impact fees, and sales tax revenue. G.O. Bonds are backed by the full faith and credit of the City.

Utility Revenue Bonds are used to finance gas, water, wastewater, electric, and solid waste projects. Utility Revenue bonds are repaid from revenues received from the customers of each particular utility.

Type of BondsThe City continues to place a high priority on infrastructure investment to attract and service future development. The links below provide more detail on recently-approved City bond programs:

2014 Utility System Bond Program
(En Español) [PDF]

2013 Public Safety and Streets Bond Programs [PDF];

2012 Parks Bond Program

Purchasing City of Mesa Bonds

Residents wishing to purchase City of Mesa bonds should contact a securities broker in order to purchase securities in the secondary market. City bonds are not sold directly to the public. Rather, bonds are sold in bulk in order for the City to receive the most favorable interest rate. 

 

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