This slide was used in a presentation to show the types of services funded by bonds in Chandler. The Chandler City Council approved the sale of the last of its 2021-approved bonds at its Nov. 13 meeting.
A week after Chandler voters went to the polls and overwhelming approved nearly $500 million in municipal bonds, the City Council was discussing bonds again.
This time, it was a planned discussion on selling the last series from the previous bond authorization.
By approving its Nov. 13 consent agenda, the Chandler City Council has authorized two bond sales that will fund major improvements to city facilities, streets, parks and water and wastewater infrastructure.
Matt Dunbar, the city’s budget and policy director, said the city will be “re-rated” in December. Once Chandler’s new bond ratings are determined, $175 million in general obligation bonds and $205 million in excise tax revenue obligation bonds will be sold in January.
“We’re hoping for like a 3.6% (bond interest rate) as a sort of target,” Dunbar said. “If I had my druthers, we’d get it at 2.6%.”
Chandler voters approved five bond questions, totaling $273 million in bonds, during a November 2021 special election. The two bond sales council approved Nov. 13 are for the last of those bonds.
The $475 million in bonds, spread across four ballot questions, approved Nov. 4 of this year will be sold at a later date.
Dunbar pointed out that bonds pay for more than 70% of all city capital project spending.
“We’re really thankful to voters who approved these bonds,” Dunbar said.
Debt service payments on the excise tax bonds will be paid from water and wastewater fees. Debt service payments from the sale of the general obligation bonds is for planned capital projects and will be repaid from secondary property taxes, Dunbar said.
The city has been able to pay off general obligation bonds with no change to the secondary property tax rate of $0.87 per $100 of assessed valuation, he said. That rate equates to an annual secondary property tax total of $3,045 for a home with an assessed value of $350,000.
The main projects the 2021-approved excise tax bonds will be water treatment, water reclamation and sewer projects. The largest and most expensive of those projects is probably the redundant 66-inch sewer pipe being installed under Loop 202 just east of Price Road and Loop 101. Recently retired Director of Public Works John Knudson spoke at several 2024 and 2025 meetings about the need for that project.
The general obligation bonds will be used for street improvements and construction of new city facilities. Those include improving the Ray and Dobson roads intersection, Kyrene Road south of Chandler Boulevard, and Alma School Road between Germann and Queen Creek roads.
Those general obligation bonds will also fund construction of three new projects: the first phase of Mesquite Groves Park in southeast Chandler, a new police forensic services facility and a new traffic management center.
Dunbar said the city has been “AAA”-rated from all three major bond rating agencies on its general obligation bonds since 2010, and in 2023 earned the top AAA rating from all three bond rating agencies on its excise tax revenue obligations. Those credit ratings produce substantial savings for ratepayers and taxpayers and more flexibility to invest in city facilities, parks, public safety, streets and utility infrastructure, he said.
Jason W. Brooks News Editor | Chandler Independent
Jason W. Brooks joined Independent Newsmedia, Inc., USA, in July 2021 as an associate editor. After a year covering Buckeye, he has covered Chandler since the fall of 2022, in addition to assisting the Daily Independent throughout his time at INI.
Education: University of New Mexico, bachelor of arts in journalism and mass communication, print emphasis, English minor.
Random Fact: He and his siblings witnessed a Space Shuttle launch and landing in the same year in person, on opposite coasts.
Hobbies: Karaoke, bicycling and American Sign Language.
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