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Phase 2 of Paloma Park in north Peoria appears hazy

Voter-approved funds reallocated, no money in proposed CIP for park after fiscal year 2024

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With voter-approved funds having been reallocated and no money planned for the long term, Paloma Park’s phase 2 appears hazy.

The Peoria City Council approved a consent agenda item at the April 4 meeting to reallocate about $18.7 million in general obligation bond proceeds that were originally sold for the park.

A staff report states the funds will be reallocated to “other projects, consistent with the city’s capital improvement program.”

Interim CFO Kevin Burke said the action to reallocate was an act of cleaning up the fiscal year 2023 budget.

“This is a balancing exercise for us, it’s not a policy exercise,” Burke said.

That said, the future of phase 2 at Paloma Park remains unclear — there are no funds listed for Paloma Park past fiscal year 2024 in the proposed fiscal year 2024 Capital Improvement Program.

In November 2021, the council authorized the sale and issuance of general obligation bonds in an aggregate principal amount not to exceed $67 million. This money was to fund projects authorized by voters in the 2000, 2005, and 2008 elections. Those general obligation bonds included $22 million for phase 2 of Paloma Park.

The total project cost of phase 2 at that time was estimated around $25 million, with the balance coming from other sources like the general fund.

However, by mid-2022, Burke said the city put the project on hold because inflation and supply chain issues had driven the cost to more than $35 million, which exceeded the financial resources dedicated to the project and there was no further “authorization” left to issue additional bonds.

“Plus there was concern that pricing was unreasonable and might someday come back down,” Burke said.

Additionally, the city is obligated to expend those funds within three years of when they were approved in November 2021. But because of inflation and a number of economic factors, staff moved those funds planned for the park to other projects that were in the CIP and approved by council, also bond funded, and could be expended in the remaining time.

Councilmember Brad Shafer, who was the lone dissenter on the consent agenda item and represents the Mesquite District, where the park is located, said bonds for the park were voter approved in 2008 and they were meant for that purpose. Shafer intends to fight for phase 2 funding in the proposed capital improvement program, which will come before council within the coming months.

“The voters passed it and I want to ensure the funds go to what the voters passed,” he said. “Public parks contribute to community health; socially, economically, and culturally. By not investing in our community, we are doing the people a big disservice.”

The long-anticipated Paloma Park, at Dixiletta Drive and Lake Pleasant Parkway just south of Loop 303, opened to the public Oct. 3, 2020. Work began with a process formalized in the 2013 Community Services Master Plan, in which residents envisioned and articulated the need for a new park.

Amenities of the current 85 acres include multipurpose fields, a fishing lake, inclusive playground features and splash pad, dog parks, multipurpose sport fields and lighted pickleball courts.

City Council approved an agreement with Valley Rain Construction for $1.8 million for design and pre-construction services for phase 2 of the park in April 2021. This included design of 35 acres with the park as a whole to be 120 acres when completed.

The Paloma Park issue has opened up discussion on not just funds for that park, but for parks throughout the city. A handful of Peoria residents spoke at the April 4 meeting on the unfavorable conditions of the parks in the southern part of the city.

Councilmember Denette Dunn, who represents the Pine District in south Peoria, said there is quite a bit of inequity between south and north Peoria, which is reflected in the parks. She said Paloma Park is beautiful, but parks in the south need improvements, including one that she was told money isn’t available to lock its bathrooms at night, as well as a park that has not had a working bathroom for more than a year.

“Let’s pay for public health and safety. Let’s pay for the other parks that were here long before. Let’s take care of the citizens in all of Peoria,” Dunn said

Philip Haldiman can be reached at phaldiman@iniusa.org, or on Twitter @philiphaldiman. We’d like to invite our readers to submit their civil comments, pro or con, on this issue. Email AZOpinions@iniusa.org.

Peoria, Arizona, Paloma, budget, capital improvement, voter approved, bond

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