The last time Surprise tried to pass a large bond issue, it failed. Now the City is back, this time with three bond issues: $34 million, $15.5 million, and $10 million.
Bond Issue #1 – Public Safety
This Bond issue encompasses 6 projects: An Evidence & Readiness Center, Police Training Facility, 16-acre land purchase for future Fire station, Police station and park, construct a permanent Fire station at 163rd Ave just south of Happy Valley Rd, construct Fire Station 308 at Litchfield Rd and Cactus Rd, construct a 44,000 sf Public Works facility.
Bond Issue #2 – Traffic Mitigation
This Bond issue encompasses 3 projects: Construct full build out of Waddell Rd between the 303 and Reems Rd., construct full build out of Greenway Rd from Cotton Rd to Sarival Ave., construct full build out of Litchfield Rd from Waddell Rd to Peoria Ave.
Bond Issue #3 – Pavement Preservation
Plan, construct, replace and improve pavement citywide.
The City will administer this cost (if approved by voters) through a secondary property tax. $26/$100,000 of value for bond issue #1, $12/$100,000 of value for bond issue #2, and $8/$100,000 of value for bond issue #3. So that is an estimated $46/$100,000 of value. That’s about $130 a year of increased property tax on a $280,000 house.
Bond issue chart Nov 2017
Let’s look at the detail tax bill for this example property:
$1,442.06 is paid in total property tax with 32.61% ($470.26) being the secondary property tax amount. That is an increase in the secondary property tax of more than 27%, and it is a 9% increase in the total amount of property tax paid. And that is for 22 years. As values rise, so do property taxes.
WeMAR is against property tax increases precisely because they affect homeownership affordability and sustainability. In the example above the secondary property tax is already a third of the bill, now the city wants to add another 10%. Households are stretched as it is with expenses they have little or no control over. How secure can future homeowners be in their ability to maintain and keep their home if they are looking forward to ever increasing property taxes?
Remember this November will be an all-mail ballot. Watch your mail, remind your clients to watch their mail. That is the only way you will be able to vote on this expense.