On Thursday, the Arizona house of Representatives passed HB2402, sponsored by Rep. Vince Leach, which will increase transparency in bonding for taxpayers. The bill specifies the information that must be included in county and municipal bond election pamphlets and ballots.
Pima County Supervisor Ally Miller praised the bill’s passage. Miller has fought for truth in bonding at the same time her colleagues have fought to keep the voters in the dark. Miller and Leach worked on the bill to ensure that the Voter Guide publication provided the maximum interest rate that is being requested of the voter.
HB2402 provides:
1. Requires the following information to appear on bond election pamphlets distributed by a county or municipality:
a. The estimated tax impact of debt service for the bond, at the maximum interest rate authorized by the voters.
b. The estimated total cost of the bond, including principal and interest at the maximum interest rate authorized by the voters.
c. A disclosure that the expenditure authorized by the bond is governed by the general purposes of the bond and not the proposed projects listed in the pamphlet.
2. Requires a county or municipal bond election ballot to include a disclosure that a “yes” vote may increase the primary tax rate to pay for the maintenance and operation of projects funded by the bond.
“Currently, A.R.S. § 35-454 establishes informational requirements for county and municipal bond election pamphlets and ballots,” according to the legislative overview. “Counties and municipalities are required to distribute a bond election pamphlet at least 35 days before an election to each household under their jurisdiction, containing all of the following information:
· The amount of the bond authorization.
· The maximum interest rate of the bond.
· The estimated debt retirement schedule for the current amount of bonds outstanding and the proposed bond, the current net assessed value and the current adopted and estimated tax rates.
· The source of repayment.
· The estimated issuance costs.
· The estimated tax impact of debt service for the bond.
· The estimated total cost of the proposed bond.
· The current outstanding general obligation debt and constitutional debt limitation.
· Projects and expenditures for which the bond is to be issued.
· The purpose of the bond
· The polling location for the addressee.
· The hours during the day when the polls will be open.
· The arguments for and against the authorization of one or more of the bond propos