City council approves funding for water, aviation improvements

A view of Scottsdale City Council during a recent study session discussion. (Independent Newsmedia/Melissa Fittro)

 

Scottsdale City Council passed a tax bond issuance for water and aviation projects, on consent, at its April 4 meeting.

The approval provides $69 million in financing to be repaid to the Municipal Property Corporation through excise taxes or other unrestricted revenues.

Financing will be provided through an agreement between the city and Scottsdale Municipal Property Corporation for:

  • $42 million for water/wastewater improvements;
  • $27 million for aviation improvements.

The Scottsdale Municipal Property Corporation is a nonprofit corp. created by the city of Scottsdale in 1967 to finance the construction or acquisition of certain capital improvements, according to a city council staff report.

The bonds are issued by MPC, which are then repaid through excise taxes or other unrestricted revenues, excluding the use of property taxes.

Identified water and wastewater projects include a booster station replacement; water system improvements; and an underground treatment facility.

Aviation financing will fund the airport terminal area redevelop project, creating a single, modern hanger and office facility in addition to parking accommodations.

According to the staff report, the city has not issued debt for the airport since 1968, when $500,000 was used for airport hanger and terminal improvements.

The use of MPC debt for aviation projects is allowed as revenues from aviation rates and fees meet the definition of a dedicated revenue source, as outlined in the Financial Policy, the staff report stated.

On March 29, 2017, the MPC approved the planned bond issuance, the staff report stated.

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