Public Safety Bond
Public Safety Bond Question/Bonos de Obligación General de Seguridad Pública
"Shall the City of Rio Rancho issue up to $3,600,000 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, apparatuses, and equipment?”
"¿Deberá la Ciudad de Río Rancho emitir hasta $3,600,000 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 instalaciones de seguridad pública y reparar, reemplazar o de otra manera mejorar los vehículos de seguridad pública, aparatos y equipos?"
For general obligation bonds / En Favor De Los Bonos Generales De obligación ❑
Against general obligation bonds / En Contra De Los Bonos Generales De obligación ❑
How would the $3.6 million be spent?
- Replacement of approximately 20 police vehicles
- Estimated cost of $1,020,495
- Replacement of Crime Scene Vehicles (one vehicle for traffic/crash investigations and one vehicle for criminal investigations)
- Estimated cost of $136,000
- Rescue/response vehicle (provides enhanced safety/protection option for officers and the public)
- Estimated cost of $320,000
- Equipment Vehicle Replacement (provides mobile transport and storage for critical incident equipment/materials)
- Police Headquarters improvements/renovations (public bathroom remodel/expansion and camera surveillance system replacement)
- Estimated cost of $207,000
- Replacement of fire engines (replacement of a vehicle from 2005 with more than 134,000 miles and a vehicle from 2006 with more than 129,000 miles)
- Replacement of Ambulances (replacement of a vehicle from 2007 with more than 100,000 miles and a vehicle from 2013 with more than 129,000 miles)
- Brush Truck Replacement (replacement of a vehicle from 2003 use for wildland fire response)
Approximately $3,497,370 is estimated to be available for projects after accounting for the required 1% for the Arts and bond issuance costs.
If actual costs are below estimates, additional projects (TBD) would be funded. If actual costs exceed estimates, projects from this list would be eliminated and subject to future available funding.
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.
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 $10 for every $100,000 in assessed property/home value.
How were these vehicles, equipment, and facility improvements selected and why?
Current and recurring revenue sources are not keeping pace with municipal government’s needs for vehicle and apparatus replacement as well as facility improvements in relation to its public safety departments (Police and Fire & Rescue). The City's adopted Infrastructure and Capital Improvement Plan for 2022-2027 has more than $11,000,000 identified for police projects with more than approximately 48% of this cost projected to come from General Obligation Bonds (subject to voter approval) and approximately 12% yet to be determined. The City's adopted Infrastructure and Capital Improvement Plan for 2022-2027 has more than $10,000,000 identified for fire/rescue projects with more than approximately 58% of this cost projected to come from General Obligation Bonds (subject to voter approval).
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.