Go Bond Election

DFA sets the Debt Service Rates based on the outstanding G.O. Bond Debt Issues. DFA considers the Fund Balance and annual debt service to be made in the following year and bases the tax rate on that. Since the 1996 G.O. Bond matures with a final payment on 06/01/2009 – the tax rate was lowered. Although we have considered issuing a new debt to take the place of the old debt, this must be decided by holding an election. In order for DFA to consider a new issue, the election must be held that passes a new debt service for a general obligation debt. An election to consider a new debt issue could be held in March of 2009. Although the Debt Service Tax Rate was changed by DFA from 0.2261 percent to 0.1724 percent based on the Fund Balance, RBC Capital Markets has informed the City that $10 million dollars can be raised utilizing the lower Debt Service Tax Rate of 0.1724 percent by making a larger principal payment against the debt in the later years of the issue. RBC Capital Markets has also indicated that the City can raise $15 million dollars by utilizing the original Debt Service Tax Rate of 0.2261 percent. The difference in the property tax payment on a residential property valued at $150,000 at a Debt Service Tax Rate of 0.2261 percent which would raise $15 million compared to a Debt Service Tax Rate of 0.1724 percent which would raise $10 million is $26.85 per year. There are a number of projects that can be completed by using the money generated by the General Obligation Bond if the citizens vote to enact the issue. The list of potential projects was developed from needs identified in the City of Alamogordo Infrastructure Capital Improvement Plan (ICIP 2009 – 2013), public input during the Community Development Block Grant (CDBG) meetings, City of Alamogordo Community Services Department Five Year Park and Open Space Comprehensive Master Plan (2008-2012), and input from the Alamogordo City Commission. Staff has not prioritized the list of potential projects as they have all been identified as a need in the community.

Library Project
$ 3,500,000.00
Oregon Tennis Court Rebuild
$ 500,000.00
Youth Football Field Improvements
$ 200,000.00
Neighborhood Park Development
$ 150,000.00
Alameda Park Zoo Entrance Building
$ 300,000.00
Fire Station # 8 Construction
$ 900,000.00

Senior Center Therapy Pool
$ 500,000.00
Solar Heating Panels for the Rec Center Pool
$ 150,000.00
Washington Park Spray Park or Sprayground
$ 1,000,000.00
Parking Lot Paving at Kids Kingdom and the AFRC
$ 85,000.00
City Entryway Streetscape Beautification
$ 100,000.00
Skateboard Park Resurface and Halfpipe Addition
$ 100,000.00
Trail System Construction
$ 75,000.00
150' Flag Pole and 60' x 30' Flag at City Hall
$ 50,000.00
Subtotal
$ 7,610,000.00

Street Projects

Pecan Drive
$ 170,000.00
Ninth Street Bridge Rebuild
$ 150,000.00
First Street (White Sands to Relief Route)
$ 500,000.00

Subtotal
$ 820,000.00

Wastewater Treatment Plant Engineering & Design
$ 1,500,000.00
Subtotal
$ 1,500,000.00

Hooser Park Detention Pond Expansion
$ 70,000.00
Subtotal
$ 70,000.00

All Project Total
$ 10,000,000.00

Wastewater Treatment Plant Expansion
$ 5,000,000.00
Subtotal
$ 5,000,000.00

All Project Total + Additional Bonding
$ 15,000,000.00