Proposed Bond Issuance Program for Fiscal Year 2022

At the May 16 City Council Meeting, Chief Financial Officer Steven Glickman shared with Council the Town's proposed 2022 bond issuance program which includes a total issuance in the amount of $23,518,000 consisting of $10,518,000 in General Obligation Bonds and $13,000,000 in Certificates of Obligation. 

Since 2012, Addison voters have approved several bond programs to fund various projects throughout Town. Once voter approval is secured, the City Council is authorized to issue General Obligation (GO) Bonds to pay for projects.

The proposed 2022 GO Bond issuance totals $10,518,000 and consists of the following:

• The final $5,000,000, from the authorized $16,000,000 ($11,000,000 issued to date), from Proposition 1 of the 2012 Bond Election for reconstruction of Midway Road. Council awarded a construction contract to Tiseo Construction on December 8th, 2020. The project is currently under construction with an anticipated completion date in Fiscal Year 2024.
• $3,213,000, from the authorized $6,723,000 ($3,510,000 issued to date), from Proposition C of the 2019 Bond Election for parks and recreation improvements and facilities. The funds would be used for improvements to Les Lacs Pond. A design contract for this project is anticipated to be brought before Council in late spring or early summer of 2022.
• $2,305,000, from the authorized $7,395,000 ($5,090,000 issued to date), from Proposition D of the 2019 Bond Election for improvements to existing municipal buildings. The funds would be used for phase two of facilities improvements projects which includes roof, HVAC, and ADA improvements, with design anticipated to begin during the summer of 2022. It is anticipated that all phase one projects will be completed by the end of Fiscal Year 2022.

Certificates of Obligation (CO) Bonds are debt that is issued by authorization of the Council and are restricted by the state in how they can be used. Councils must advertise the sale of COs to give the community notice so that they can address any concerns with Council prior to the sale. Addison's City Council is scheduled to consider an Ordinance authorizing a Notice of Intent for the sale of the COs on June 14, which will then be published in The Dallas Morning News on June 20 and 27. The sale for both the GO and CO Bonds is slated for August.

The proposed 2022 Certificates of Obligation issuance totals $13,000,000 and consists of the following:

• $10,000,000 for the reconstruction of Midway Road. On November 13, 2018 Council directed the City Manager to proceed with the issuance of Certificates of Obligation for this project. Council awarded a construction contract to Tiseo Construction on December 8th, 2020. The project is currently under construction with an anticipated completion date in Fiscal Year 2024.
• $3,000,000 for Utility Fund capital improvement projects supported and serviced by Utility Fund revenue.

With the proposed issuance, and accounting for anticipated growth in taxable property values, the Interest and Sinking (I&S) tax rate is estimated to increase from approximately $0.1735/$100 in Fiscal Year 2022 to $0.1957/$100 in Fiscal Year 2023. The 2019 Bond Committee estimated that for Fiscal Year 2023 the I&S tax rate would be approximately $0.2311/$100, which is over 18% higher than the current estimate for Fiscal Year 2023.