Public Safety Bond
Public Safety Bond Question
“Shall the City of Rio Rancho issue up to $3,790,000 of general obligation bonds, to be repaid from property taxes, for the purpose of designing, constructing, repairing, preserving, rehabilitating, enhancing and otherwise improving public safety facilities and repairing, replacing or otherwise improving public safety vehicles, apparatus, and equipment?”
For general obligation public safety bonds ❑
Against general obligation public safety bonds ❑
How would the $3,79 million be spent?
•Replacement of approximately 17 Police Vehicles
Estimated cost of $680,000
•Replacement of the Mobile Command Post
Estimated cost of $500,000
•Police Radio Enhancements
Estimated cost of $300,000
•Police Headquarters improvements/renovations
Estimated cost of $140,000
• Fire Ladder Truck replacement
Estimated cost of $950,000
•Fire Engine replacement
Estimated cost of $500,000
•Fire & Rescue Station 1 (Southern Boulevard) improvements
Estimated cost of $163,539
•Fire & Rescue Station 5 (Enchanted Hills) remodel/renovation
Estimated cost of $250,000
•Replacement of three Cardiac Monitors
Estimated cost of $90,000
•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 public safety vehicle, equipment or facility needs (to be determined) would be addressed. If actual costs exceed estimates, some vehicle and/or equipment acquisitions would be eliminated.
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 $18 for a $100,000 market value house would occur.
How were these vehicles, equipment, and facility improvements selected and why?
Current revenues are not keeping pace with local government’s capital needs for vehicle and apparatus replacement and in particular the public safety departments. More than 30 of the Police Department’s vehicles have over 100,000 miles, the current mobile command unit is from 1995 and has many unserviceable systems, and Police Headquarters is in need of exterior and interior infrastructure and security improvements. The Fire and Rescue Department has a ladder truck from 2007 with over 140,000 miles, facilities over 20 years old in need of infrastructure improvements, and cardiac monitors that are no longer supported by the vendor and cannot be repaired if needed.
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.