This week, The State Press will tackle the local political candidates and ballot measures that Arizona residents will vote upon on Election Day, Nov. 8. Stay up to date with political guides and how-to's throughout the rest of the election season.
Although voters are heavily involved with deciding who to support in this year’s election, there are many policy-based questions on the ballot that can greatly affect the local environment for most Tempe residents.
This election season, Tempe’s governing body gave voters a chance to approve funding toward different city services — streets, buildings, storm drains, etc. — through bond questions, which will decide what parts of the city should receive additional funding through general obligation bonds. These bonds will be repaid by secondary property taxes.
What is a bond question?
For the City of Tempe, much like other cities in Arizona, bond questions are typically given every four years to voters as a way for the local government to know which parts of the city residents would like to improve the most.
Ken Jones, Tempe's chief financial officer and assistant city manager, summarized the purpose of bond questions in an emailed statement:
“Tempe’s bond program is a time-tested process for funding necessary capital maintenance and improvement projects over time so the property owners paying the taxes see the benefits of the improvements,” he said.
How are property taxes involved?
According to the question’s text, the bonds in all five questions would be repaid by revenue coming from a property tax increase for Tempe residents.
However, Jones said the phrase “property tax increase” is misleading, because payments for new bonds begin as outstanding bonds retire, meaning there will not be a significant impact felt by Tempe residents.
"We are required to notify voters what the cost will be to repay the bonds, but that cost will not result in an increase in taxes from what is currently being paid," he wrote in an email. "The issuance of bonds coincides with the retirement of outstanding bonds. The City has a policy to increase the total property tax levy on existing properties by no more than the rate of inflation each year. So, while there is a cost to repaying the bonds, the cost is not additive to current tax bills."
Question No. 1: Water and Sewer Improvements - $148,000,000
The first bond question Tempe voters will see on their ballot is the most expensive of the five and will ask to authorize funding for the City’s water and sewer improvements.
According to the question’s text, a “yes” vote will allow the City to receive $148 million in funds to maintain and improve treatment processes, water capacity, wastewater treatment plants, water distribution and storage infrastructure and sewer collection infrastructure.
Although the bond questions all call for funding through property tax increases, Jones wrote in the email that Question No. 1 can be funded differently through water and sewer service user fees.
“Water/wastewater operations are accounted for as an enterprise operation, with all funding coming from user fees (not taxes),” he wrote. “Therefore, all bonds issued for water/wastewater capital projects will be repaid from user fees. However, the City can issue general obligation bonds, which would be backed by the full faith and credit of the City, in order to get the lowest possible interest rate on the bonds.”
Question No. 2: Street Improvements/Storm Drains - $25,000,000
The second bond question Tempe voters will see on the ballot requests authorization for funding improvements to streets and storm drains.
According to the question’s text, a “yes” vote will allow the City to receive $25,000,000 in funds to: Acquire, construct, reconstruct, or improve traffic control devices, such as street lighting, street signage and underground utility lines, highways, streets, avenues, bike paths, bridges, city facility parking lots and alleys within the city.
It will also fund the city's plan to acquire land to help streamline local transportation and improve the storm drain system.
Question No. 3: Public Safety - $20,000,000
This question will ask voters to approve $20 million to fund improvements for Tempe's public safety services.
Read more: State Press guide to Election Day: The local public safety bond
Question No. 4 - Park Improvements/Community Services - $34,000,000
Tempe voters who would like local parks to be updated should vote to answer bond Question No. 4.
According to the question’s text, with a “yes” vote, Tempe voters will approve of $34 million to be given to the City to acquire, construct and improve park and recreation infrastructure, equipment and facilities, including lighting, lakes, landscaping and aquatics.
Question No. 5 - Municipal Infrastructure Preservation - $27,000,000
Similarly, city buildings and facilities may be improved by answering Question No. 5.
According to the question’s text, with a “yes” vote, Tempe voters will approve of $27 million to be given to the city to improve the maintenance of city buildings, heating and air conditioning systems, municipal infrastructure and other facilities.
Reach the reporter at angel.n.mendoza@asu.edu or follow @angelnikolas96 on Twitter.
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