The Town's proposed 2022 bond issuance program includes a total issuance in the amount of $23,518,000 consisting of $10,518,000 in General Obligation Bonds and $13,000,000 in Certificates of Obligation. Details of the proposed issuance are as follows:
Since 2012, Addison voters have approved several bond programs to fund various projects throughout Town. Once voter approval is secured, the City Council is authorized to issue general obligation bonds to pay for projects.
The proposed 2022 General Obligation Bond issuance totals $10,518,000 and consists of the following:
- The final $5,000,000, from the authorized $16,000,000 ($11,000,000 issued to date), from Proposition 1 of the 2012 Bond Election for reconstruction of Midway Road. Council awarded a construction contract to Tiseo Construction on December 8th, 2020. The project is currently under construction with an anticipated completion date in Fiscal Year 2024.
- $3,213,000, from the authorized $6,723,000 ($3,510,000 issued to date), from Proposition C of the 2019 Bond Election for parks and recreation improvements and facilities. The funds would be used for improvements to Les Lacs Pond. A design contract for this project is anticipated to be brought before Council in late spring or early summer of 2022.
- $2,305,000, from the authorized $7,395,000 ($5,090,000 issued to date), from Proposition D of the 2019 Bond Election for improvements to existing municipal buildings. The funds would be used for phase two of facilities improvements projects which includes roof, HVAC, and ADA improvements, with design anticipated to begin during the summer of 2022. It is anticipated that all phase one projects will be completed by the end of Fiscal Year 2022.
The proposed 2022 Certificates of Obligation issuance totals $13,000,000 and consists of the following:
- $10,000,000 for the reconstruction of Midway Road. On November 13, 2018 Council directed the City Manager to proceed with the issuance of Certificates of Obligation for this project. Council awarded a construction contract to Tiseo Construction on December 8th, 2020. The project is currently under construction with an anticipated completion date in Fiscal Year 2024.
- $3,000,000 for Utility Fund capital improvement projects supported and serviced by Utility Fund revenue.
With the proposed issuance, and accounting for anticipated growth in taxable property values, the Interest and Sinking (I&S) tax rate is estimated to increase from approximately $0.1735/$100 in Fiscal Year 2022 to $0.1957/$100 in Fiscal Year 2023. The 2019 Bond Committee estimated that for Fiscal Year 2023 the I&S tax rate would be approximately $0.2311/$100, which is over 18% higher than the current estimate for Fiscal Year 2023. |