Quality of Life Facilities Bond
Quality of Life Facilities Bond Question/Bonos de Obligación General de Instalaciones Públicas de Calidad de Vida
"Shall the City of Rio Rancho issue up to $1,040,000 of general obligation bonds, to be repaid from property taxes, for the purpose of designing, constructing, renovating, acquiring, rehabilitating, improving and equipping public quality of life facilities in the City?”
"¿Deberá la Ciudad de Río Rancho emitir hasta $1,040,000 de bonos de obligación general, que serán reembolsados con los impuestos a la propiedad, con el propósito de diseñar, construir, renovar, adquirir, rehabilitar, mejorar y equipar instalaciones públicas de calidad de vida en la Ciudad?"
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 $1.04 million be spent?
- Enchanted Hills Park (7201 Enchanted Hills Blvd.): replacement of playground equipment, benches, tables, and Americans with Disabilities Act (ADA) improvements
- Estimated cost of $151,888
- Veja Baja Park (303 Veja Baja Drive): replacement of playground equipment and ADA improvements
- Estimated cost of $173,500
- Rio Vista Park (1670 Riverside Drive): replacement of playground equipment and ADA improvements
- Estimated cost of $176,500
- Library Materials: books, movies, music, periodicals, and digital services
- Library Equipment: computers, mobile hotspots, and furniture
- Estimated cost of $101,492
- Estimated cost of $101,492
Approximately $1,003,777 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 $3 for every $100,000 in assessed property/home value.
How were these parks and library items selected and why?
Additional resources are needed for parks and recreation and library services in order to address identified needs and maintain the quality of highly desirable community services.
The City’s adopted Infrastructure and Capital Improvement Plan for 2022-2027 has approximately $29,000,000 identified for parks and recreation projects with approximately 38% of this cost yet to be determined. All park facilities were assessed in 2014 for Americans with Disabilities Act (ADA) compliance and a transition plan was developed that the City must implement. The remaining work is estimated to cost more than $1,000,000.
The City’s libraries rely on Sandoval County Library Bond proceeds for more than 90% of its available budget for public resources such as books, music, movies, periodicals, digital services, and technology (e.g., computers, mobile hotspots). County funding is not keeping up with needs. Despite a growing population, natural cost increases over time, and the need to expand services due to technology changes, Rio Rancho libraries have received the same amount of funding (approx. $1,900,000 spread over 4-year increments) from Sandoval County between 2006-2022. During this same time, the number of Rio Rancho libraries has increased and the City's population has grown from more than approximately 70,000 to 104,000.
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.