Road Bond Question
“Shall the City of Rio Rancho issue up to $10,810,000 of general obligation bonds, to be repaid from property taxes, for the purpose of designing, constructing, repairing, preserving, rehabilitating, enhancing and otherwise improving roads?”
For general obligation road bonds ❑
Against general obligation road bonds ❑
How would the $10.8 million be spent?
•Unser Boulevard (City limits to Zaragoza Road)
Mill and inlay with an estimated cost of $6,847,869.
•King Boulevard (Rainbow Boulevard to Wilpett Road)
Mill and inlay with an estimated cost of $1,276,450.
•Santa Fe Hills Way (U.S. 550 to Enchanted Hills Boulevard)
Reconstruction with an estimated cost of $1,255,500.
•Riverside Drive (N.M. 528 to Honduras Road)
Reconstruction and utility replacement** with an estimated cost of $1,100,000
•Public Art (local law requires that one percent (1%) of the proceeds of each general obligation bond issuance shall be dedicated for works of permanent public art that enhance the environment of the city)
•Bond issuance costs and contingency
*If actual costs are below estimates, additional road work (to be determined) would be performed. If actual costs exceed estimates, road work would be eliminated. Click here for actual project costs and scopes of work.
**Riverside Drive would also have water line and water main replacements occurring at the same time as road work via funding from existing Utilities Department resources.
What are the tax implications?
If this question is approved by voters, it is estimated (based on 2019 property tax information) that the property tax rate for municipal debt service would remain unchanged (i.e., no tax increase). This is possible due to the financing and retirement of previously issued bonds. If this question is rejected by voters, it is estimated that beginning in 2020 a decline in property tax of $32 for a $100,000 market value house would occur.
What are reconstruction and mill and inlay work?
Reconstruction involves removing all existing asphalt to native raw dirt and building the section correctly based on roadway classification.
Mill and inlay is when approximately one to two inches of the existing asphalt is removed and replaced. This type of work adds, by approximately five to 10 years, longevity to the life of a road.
How were these roads selected?
City engineers rate the condition of all roads in the city with an assessment of what work, if any, is needed. Based on this information, public input, the city’s adopted Infrastructure Capital Improvement Plan, Governing Body input, tax level considerations, and the amount of available funds, a list of projects is developed.
What are the city’s road needs?
Rio Rancho’s paved roadway system requires increased investment/funding in all aspects (regular maintenance, reconstruction, etc.). This need exceeds the recurring resources currently available to municipal government. For example, the city’s 2020-2025 Infrastructure Capital Improvement Plan has approximately $117 million listed in road work of which more than $39 million has no identified funding source.
A general obligation bond provides a predictable source of funding, is considered the most secure form of municipal debt, is the most cost efficient form of borrowing, and has favorable terms with no additional security or reserve funds required.