Citizen Bond Committee Meeting
City of Peoria, Pine Room
November 14, 2007

Amended 


A regular meeting of the Citizen Bond Committee of the City of Peoria, Arizona, was 
convened at 8401 West Monroe Street in open and public session at 6:30 p.m. 

Members present: Greg Loper, Salvatore LaPuma, Barry Spiegel, Ron Lyzniak, Phil 
Hanson, Pat Temes, Jim Redondo, Ken Myers, Pete Rivera, Frank Boholl, Santos Diaz 
III, Wendy Wood, Marvin McCloe, Armando Macias, William Bercu, Gary Nerdig, 
Anne Wojcik, Tom Campbell, Mark Proctor, Kathy Heyman, Jamie Arkin, Gary Nelson.  
Don Holtzee, Peter Raymond, Alan Doerschel, Jack McCleary, William Schindler


Members Absent: Michael Rogers, Paul Studer



Regular Agenda

Mayor Barrett introduced Chairman Greg Loper and Vice Chair Phil Hanson.  City 
Manager Terry Ellis then addressed the group and summarized the purpose of the 
committee.  Mr. Ellis discussed the committee was appointed to incorporate community 
values into a possible future bond election based upon the City’s Capital Improvement 
Program.  He provided a brief overview of the planning process and how bonds are used 
to pay for infrastructure of the City.  Secondary property taxes support the debt service 
payments on bonds issued to finance capital projects.  The City’s capital projects range 
from parks to water infrastructure.  The City’s Capital Improvement Plan is based on a 10 
year period.  Mr. Ellis also explained the concept that reasonable taxation is necessary for 
good government.  

Greg Loper discussed how meetings should be conducted and his expectations of the 
committee members.  

John Wenderski then discussed a prepared PowerPoint presentation.  The City’s Capital 
Plan for the next ten years is $1.1 billion.  He explained how the committee serves and 
reports directly as an ad hoc committee of the City Council.  Mr. Wenderski clarified that 
the constitution and state statute require that voters approve the issuance of General 
Obligation bonds. 

The Capital Improvement Plan (CIP) covers a ten years.  It provides a general plan on 
where the City is heading.  Building a road can take three to four years.  The CIP is 
updated annually to compensate for changing priorities and economic conditions.  This 
year alone, $690 million will be used to fund capital improvements for the City.   Other 
ways to fund large projects include cash funding and impact fees.  All departments within 
the City have different priorities and have to work together to prioritize the projects.

City Statistics:
*	Citizen survey found high levels of trust in the City of Peoria
*	Sales taxes are the single highest revenue
*	Secondary property taxes are used to pay debt on bonds

General Obligation bonds are the highest rated type of bond because they are backed by 
the full faith and credit of the governmental entity.  They allow governments to borrow at 
lower interest rates.  General Obligation bonds require voter approval and the debt 
incurred is paid by the City’s secondary property taxes.  The City’s secondary tax rate is 
$1.25.
The bond ratings from the three primary rating agencies provide the City of Peoria’s 
General Obligation Bonds with the second highest rating which is AA (Very strong 
security, only slightly below best rating).
Standard & Poors: AA
Moody’s Investor: Aa3
Fitch Ratings:  AA

The results from the last bond election in 2005 approved $356 million in voter 
authorization.  The actual cost of the projects was $282, but because the projects are done 
over time, an inflation factor is added in.   There is an additional requirement called 
Proposition 100 which requires separate voter approval for City administrative facilities 
that exceed a certain square footage and cost in excess of $500,000.  Proposition 100 also 
covers arenas and stadiums.  The City’s new Development Services Building required 
voter approval under Proposition 100.  In 2005, the voters approved the construction of 
that building. 

Another bond election is needed because projects are being completed quicker and 
construction costs have escalated, requiring more bond authorization.  The bond 
committee from 2005 approved the projects presented by staff.  They also made 
recommendations for future projects.  This is the committee’s objective - to make 
recommendations regarding the community’s needs in terms of capital projects. 

Mr. Wenderski reviewed a variety of other bond projects completed or currently 
underway.




Next Steps

Mr. Wenderski reviewed the preliminary bond committee meeting schedule with the 
group. He noted that the meeting scheduled for December 5, 2007 has been cancelled.  
Instead a meeting was added for December 19, 2007.  In February, the committee will 
finalize their recommendations and in March those recommendations will be forwarded 
to the City Council for approval.  The Council may vote to hold an election for additional 
voter authorization.  If so, the necessary election information will be submitted to 
Maricopa County.  In addition, staff will conduct a series of Town Hall Meetings to 
discuss the upcoming bond election and associated projects with citizens.  In November 
of 2008, the voter authorization questions would be placed on the ballot for the citizens of 
Peoria to approve or disapprove at the General Election.

The committee as a group discussed the current meeting time of 6:30 p.m. and all agreed 
to keep the meeting start time as it is scheduled at 6:30 p.m.  

Mr. Wenderski also reviewed the contents of the committee member binders noting that 
there was additional supplemental information provided by staff for their use.  

Mr. Wenderski then opened the floor to questions from the committee members and the 
following summarizes those questions:  

Is the City of Peoria expanding to Yavapai County?  Answer: Unlikely in the near future.  

How is the funding for schools and school programs developed?  Answer: School 
districts/school systems are separate legal entities with their own governing boards.  They 
have their own financial funding sources and capital plans.  

What are future business projections for the City? Answer: The city tracks and forecasts 
both residential and commercial development.  Commercial development is somewhat 
harder to estimate than residential development.  For example, Peoria Crossing on 91st 
Ave and Northern took seven years to complete.  

What is the current economic climate?  Answer: Brent Mattingly and Jeff Tyne will cover 
in a future meeting.  

Will the bond committee be split into two sub-committees as was done in prior years. Or 
will all members function as a single committee to make recommendations?  Answer: 
The entire bond committee will make decisions as a whole on all of the projects 
presented by staff.  

Is there contention between departments within the City for capital funding?  Answer: 
Staff are unified professionals and understand that everyone has their own needs.  Many 
years ago there was some contention between departments because there were huge needs 
and very little funding.  

Is most funding used for buildings or equipment?  Answer: Capital projects are primarily 
“sticks and bricks” type of projects.  Equipment is funded through the City’s operating 
budget process.   Fire trucks and fire stations are generally funded through impact fees.  

Being no further comments or questions, the meeting was adjourned at 7:55 p.m. 



						 ___________________________________                                                                                                                                                                                 
						Greg Loper, Committee Chairman




Submitted by:


_________________________________
Michelle Grieb, Executive Assistant
Finance Department