The Dallas City Council is set to decide on a $960 million bond package that would be put to voters in a November special election. The package is divided into three propositions, each with its own estimated repayment costs.

Proposition Breakdown

Proposition A would authorize $443 million in general obligation bonds for public safety facilities, with an estimated repayment of $629.62 million. Proposition B would authorize $17 million for fleet maintenance facilities, with an estimated repayment of $24.16 million. Proposition C would authorize $500 million in pension obligation bonds for the Dallas Police and Fire Pension System, with an estimated repayment of $1.097 billion.

The total estimated repayment for the bond package is $1.751 billion, which is approximately $791 million above the principal amount. The city’s current property tax rate is 69.88 cents per $100 of taxable value, with 19.13 cents dedicated to debt service.

Concerns and Debate

Council Member Cara Mendelsohn has expressed concerns about the inclusion of the 911 and emergency operations relocation in the public safety proposition, calling it a ‘poison pill’ that could jeopardize the entire proposition. The city’s Finance Committee must receive notice and the City Council must separately authorize the issuance of pension obligation bonds, which would be issued in tranches of at least $125 million.

The Government Finance Officers Association recommends that state and local governments not issue pension obligation bonds due to investment risk, increased bonded debt, and the possibility that investment returns may not exceed borrowing costs.

Original reporting: The Dallas Express — read the source article.