Road Bond Question/Bonos de Obligación General de Carreteras
“Shall the City of Rio Rancho issue up to $10,610,000 of general obligation bonds, to be repaid from property taxes, for the purpose of designing, constructing, repairing, preserving, rehabilitating, enhancing and otherwise improving roads and underlying utility infrastructure?”
"¿Deberá la Ciudad de Río Rancho emitir hasta $10,610,000 de bonos de obligación general, que serán reembolsados con los impuestos a la propiedad, con el propósito de diseñar, construir, reparar, preservar, rehabilitar, mejoras y de otra manera mejorar las carreteras y la infraestructura de servicios públicos subyacentes?"
For general obligation / En Favor De Los Bonos Generales De obligación ❑
Against general obligation /En Contra De Los Bonos Generales De obligación ❑
How would the $10.6 million be spent?
- Enchanted Hills Boulevard (NM 528 to PDV)
- Reconstruction with an estimated cost of $2,000,000.
- Northern Boulevard (NM 528 to Rockaway Boulevard)
- Reconstruction with an estimated cost of $2,900,000.
- 19th Avenue (NM 528 to Golf Course Road)
- Reconstruction with an estimated cost of $1,750,000.
- Quantum Road (NM 528 to Northern Boulevard)
- Reconstruction with an estimated cost of $1,200,000.
- Spring Drive (Unser Boulevard to Mesa Road)
- Reconstruction with and estimated cost of $1,500,000.
Approximately $10,291,711 is estimated to be available for projects after accounting for the required 1% for the Arts and bond issuance costs. The noted projects have an estimated total cost of $9,350,000. A contingency (for materials and/or labor cost increases) of $941,711 is factored in, and if contingency is not needed, additional projects will be identified and funded.
All of the noted projects have a water/sewer utility improvement component which totals an estimated $5,449,880. Should voters approve the bond question, $5,449,880 in available Federal funds would be paired with road bond funds to complete the noted projects and work.
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.
Reconstruction involves removing all existing asphalt to native raw dirt and building the section correctly based on road classification.
What are the tax implications?
If this question is approved by voters, it is estimated (based on the most current property tax value estimates) that the property tax rate for municipal debt service would remain unchanged (i.e., no tax increase). This is possible due to property tax values and the financing and retirement of previously issued bonds. If this question is rejected by voters, it is estimated that initially the annual property tax rate would decrease by approximately $31 for every $100,000 in assessed property/home value.
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 street system requires increased investment/funding (preventative maintenance, rehabilitation, reconstruction, etc.). The road need exceeds the recurring resources currently available to municipal government. The City's adopted Infrastructure and Capital Improvement Plan for 2022-2027 has approximately $89,000,000 identified for road projects with more than approximately 37% of this cost projected to come from General Obligation Bonds (subject to voter approval) and more than 32% to be determined.
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.