City Council Approves $14.2 Million Bond Issuance Amidst Budgeting Challenges

BULLHEAD CITY — In a strategic move to navigate through budgeting constraints imposed by state law, Bullhead City Council has approved a $14.2 million bond issuance. The city, flush with funds but hindered by a 1980 state constitutional amendment limiting municipal spending, has turned to this financial instrument as a temporary solution. Mayor Steve D’Amico clarified the city’s unique position, stating, “We’re not in the same position as the county, where they don’t have the money and are in dire need of it.” The city’s financial health is robust, but upcoming expensive projects like the Senior Campus expansion and the transformation of the former Mohave Valley Daily News building into a new animal shelter have pushed it close to the state-imposed expenditure limit. City Manager Toby Cotter presented the bond issuance as a viable solution during Tuesday night’s regular City Council meeting. He explained that surpassing the expenditure limit would result in reduced state funding for the following fiscal year. The bonds, exempt from the expenditure limit, provide a workaround, allowing the city to invest in federal securities at 5% interest while paying down the bonds as quickly as possible. Financial advisor Mark Reader from Stifel outlined the city’s plan to earn more interest on the bond proceeds than the cost of borrowing, potentially allowing the city to profit from the transaction. The majority of the bonds could be paid off by November 2024, with the remainder settled by March 2025. However, this bond issuance is a short-term fix. A long-term solution, requiring voter approval, was discussed in the form of two ballot options: a permanent base adjustment or home rule. The former would allow the city to set its own expenditure limits, while the latter would require voter renewal every four years. City administration plans to revisit this issue in early 2024, providing ample time for community input and discussion. The City Council meeting also addressed other civic matters, including appointments to various boards and commissions, approval of vehicle purchases for the police department, and zoning repeals for dormant projects on state lands. With this bond issuance, Bullhead City takes a calculated step to navigate its unique financial situation, ensuring that vital community projects move forward while adhering to state financial regulations. The city’s proactive approach highlights its commitment to fiscal responsibility and community development, even in the face of bureaucratic challenges.