- What are the goals of the General Obligation (G.O.) Bonds?
- Every dollar of G.O. Pompano! will be spent in Pompano Beach.
- Improvements to local roads and bridges may reduce traffic congestion, cut commute time and improve safety.
- G.O. Pompano! may improve public safety and the quality of life of residents (projects are designed to improve emergency 911 response times, enhance public safety, reduce flooding, etc.)
- G.O Pompano! projects could help increase property values and expand the City’s tax base
- G.O. Pompano! allows our community to direct significant funding to a larger number of projects sooner, thereby potentially improving the quality of life of our current residents faster than other funding methods.
- Local business participation – If G.O. Pompano! passes, $175 million in contract awards will be made by the City over the next few years. Qualified local businesses would be able to participate in this process.
- Create local jobs – City improvements may attract private investment in the form of new businesses.
- G.O. Pompano! improvements and potential private investment into Pompano may stimulate tourism, existing and new businesses retail sales which may enhance non-property tax revenue sources (i.e. sales taxes to the City) reducing reliance on property taxes.
- $175 million raised from G.O. Pompano! will allow the City to leverage bond proceeds as matching funds for state and federal grants (free money). These grant programs often require the City to provide up 60% of the funds needed to complete a project before the grantor agrees to fund the other 40%, as an example.
- How were projects selected?
Projects were selected based on:
- Public input – community meetings, advisory boards, commission meeting comments, community surveys
- Parks Master Plan development process
- District Commissioner input
- Needs Assessment – (i.e. pier replacement, fire stations)
- Strategic planning process
- Attractiveness of G.O. Bond projects when applying for free money (federal and state grants)
- Why is this being proposed now?
- What is a Bond Referendum?
- Why are there 3 separate ballot questions?
The City’s infrastructure is aging, including fire stations, recreation facilities, roads and the like. Failure to significantly invest in the rehabilitation or replacement of these items may result in prolonged maintenance costs and a diminished quality of life for our residents. In addition, the City’s population has grown by 584% (chart below) since the 1960s and to better serve its residents, it is essential that the City invests in public infrastructure to potentially address traffic congestion, improve local roads, strengthen public safety and secure local home values. Many of our facilities are over 50 years old and are not adequately designed to handle our population surge over past decades.
The Florida Constitution requires G.O. Bonds to be approved by a majority of voters within the boundaries of the issuing entity (the City). A referendum is a set city-wide election date on which voters may consider the proposition or approval of the bonds.
Florida law requires that the City group similar measures together into separate ballot questions. As such, voters are being asked to consider 3 separate ballot questions to encompass the following category of projects:
- Ballot Question No. 1 - Streets, Sidewalks, Bridges and Streetscaping
- Ballot Question No. 2 - Parks, Recreation and Leisure Activities
- Ballot Question No. 3 - Public Safety
Residents may view the 3 Ballot questions at the link below: http://pompanobeachfl.gov/pages/go_bond/go_bond
General Obligation Bonds (G.O. Bonds) are a common tool used by cities to raise money for local improvements. Over 50% of the cities in Broward County have G.O. Bonds for this purpose. G.O. Bonds require voter approval, with the security for repayment being a pledge of the City’s full faith and credit.
G.O. Bonds are the most cost-effective bonds to issue (typically offering the lowest interest rate compared to other bond types).
No. The City last issued G.O. Bonds in 1989 (28 years ago).
It is expected that the City will be assessing a G.O. millage rate each year through the maturity of the G.O. Bonds.
Should Pompano voters approve the G.O. Bond, it is currently anticipated that the City will have access to G.O. Bond proceeds by the fall of 2018.
It is estimated that the average annual impact per $1,000 of impacted property value will be about 60 cents per year. As an example, for a $100,000 property it would be $60/year.
No. The average estimated annual amount a resident pays in taxes will not go up if their property appreciates in value. The repayment schedule (principal and interest) for the G.O. Bonds will be set up front, similar to a mortgage payment, with a fixed interest rate.
Not directly, though it may affect your landlord.
Additional information may be obtained at the following link:http://pompanobeachfl.gov/pages/go_bond/go_bond
Projects are located throughout the City in all 5 Commission Districts.
Projects will be prioritized based on numerous considerations, such as each project’s current status (under design, included in grants, etc.), immediate needs of the community and impact to the community from a construction standpoint.
It is currently estimated that it will take the City about 7 seven years to complete all 25 projects on the project list. The construction timeline for each individual project will vary, but it is estimated that it will range anywhere from 1.25 to 6 years.
All G.O. Bond project contracts amounting to approximately $175 million will be awarded based on a competitive bidding process and in accordance with City policies and procedures. The Purchasing Department will collaborate with the Workforce Program Director to establish outreach events to notify local residents, vendors, and contractors about upcoming projects and opportunities. Local businesses are also encouraged to register with the City’s Purchasing Department to ensure direct notification when bid solicitations are noticed.
A centralized webpage will be customized to include monthly project reports with progress details and tangible/quantifiable data (i.e., % completion, $$$ paid to date, specific activities completed the previous/current months and outlook for the next month).
Once a project is completed within a category of projects (i.e. parks, recreational and leisure activities), any surplus will remain on deposit and may be applied to another approved project within that same category. The City Commission may publicly discuss options to fund an additional parks, recreation or leisure project, as an example.
Should it not be feasible for the City to move forward with a proposed project on the G.O. Bond list, a suitable project within a similar category (i.e. if a public safety project is cancelled, it must be replaced with another project this category). The City would utilize a public process to determine a replacement project, as is required by City policy.
The City’s project management staff will be responsible for establishing a tracking and reporting mechanism to ensure that milestones are being accomplished timely. Regular status reports will also be available to the City Commission and the public on the City’s website.
Did you know that the City’s financial records are audited annually by an independent certified public accountant? Should voters approve the proposed G.O. Bond issue, not only will the expenditure of G.O. Bond proceeds be subject to audit annually, but the City will publish an annual “report card” to be produced by the City Manager’s office. Throughout the process, the City’s residents will get to see a transparent accounting of the projects completed and associated costs, as well as a forecast for the next year’s projects and projected costs. In addition, the City’s Finance Department will be tasked with overseeing all G.O. bond activities, to include establishing a separate project fund to account for all bond monies received and spent.
Pay-as-you-go means that the City puts a little money aside each year, similar to putting money in a piggy bank, which accumulates until there is enough money available to eventually complete City improvement projects. The City raises the money needed for this purpose through annual property tax increases to our residents. Pay-as-you-go is a useful tool, and the City has utilized this method to pay for some of its City improvements. However, in order to minimize annual property tax increases to our residents, pay-as-you-go has only allowed the City to accumulate minimal monies for its infrastructure (fire stations, streets, parks etc.) needs and is generally a slow process to get needed City improvements completed in the near term. As an example, it could take the City as much as six years (assumes we only raise about $1 million per year pay- as-you-go) to accumulate the monies needed (about $6 million) to construct a new fire station and another almost two years to construct that fire station. G.O. Bonds allows the City to raise a large amount of money quickly to get needed City improvements done and to spread the property tax impact to our residents over a thirty year period. The expediting of City improvements allows residents who contribute to paying for these improvements to actually enjoy them and allows future residents to also pay their fair share for these projects. Pay-as-you-go means that only current residents would pay for City improvements. With the G.O. Bonds, both current and future residents share the cost and benefits of those improvements.