| 2019 Bond Ratings
Type of Bond
|Standard & Poor's||Moody's|
|General Obligation Bonds||AA||Aa2|
|Utility Revenue Bonds||AA-||Aa2|
The City issues debt in the form of bonds in order to finance long-term capital improvements such as streets, buildings, utility systems, etc.. The financed assets should have at least the same useful life as the term of the bond (e.g., a waterline may have a 50-year useful life, while the bond to finance it may have a 25-year term). 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.
For more information, visit the City of Mesa Data Portal on Bonds and Debt Service.
The City uses two main types of bond financing: (1) general obligation bonds and (2) utility systems revenue bonds. The ratings for these bonds are shown in the table 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 and development impact fees. G.O. bonds are backed by the full faith and credit of the City.
Utility Systems 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 utility.
Purchasing City of Mesa Bonds
City bonds are not sold directly to the public. Rather, the City sells bonds to financial institutions in bulk in order to achieve the lowest possible cost. Residents wishing to purchase City of Mesa bonds should contact a securities broker in order to purchase the bonds in the secondary market.
Office of Management & Budget
P.O. Box 1466
Mesa, AZ 1466