Disclaimer: The comments in this blog are my personal opinion and may or may not reflect an adopted position of the city of Glendale and its city council.
I have received a lot of calls, emails and text messages from citizens wanting an explanation of Proposition 437. They say the city has not provided any information on this issue. If you go to www.glendaleaz.com on the landing page there is a link to get you to the information about Proposition 437 and the 4 ballot questions asking for voter approval for bond authorization.
You may have wondered why the city is not asking voters to vote ‘yes’ on Proposition 437 and the 4 bond questions. By state statute a city may not advocate for or against issues presented to the voters when they are city initiated. The city has held at least a dozen public informational meetings on these issues where information about them was presented by staff being careful not to advocate for the issues presented.
With Proposition 437 the city is asking for voter approval to grant a franchise agreement between the city and EPCOR Water Arizona, Inc. Approval would allow EPCOR to construct, maintain and operate water and wastewater utilities within the city including any future annexations, west of 115th Avenue. EPCOR has been providing water and wastewater services to many entities both commercial and residential west of 115th Avenue for many years. All of their current service provision has been on county land not incorporated Glendale land. Since they are already operating in that area and already have the infrastructure in place to provide services it makes sense to grant them the right to service properties in Glendale’s Municipal Planning Area (MPA) as those properties are annexed into Glendale.
The city council approved a policy for future annexations in far West Glendale that mandates the area be used for industrial, commercial and retail development, most particularly around the Loop 303 area. With EPCOR already providing water and sewer services in that area it does not require the city to invest millions of dollars in putting in the needed infrastructure there. EPCOR already has customers and operates in that area as well as in some West Valley cities.
Voter approval of this franchise agreement in no way affects current city water and wastewater customers now getting those services from the city. There is no relationship between the two services. Those people who get water and wastewater services from the city will continue to get those services. Approval of this franchise agreement eliminates the need to expand city infrastructure beyond 115th Avenue. If the voters do not approve this franchise agreement then Glendale may have to build infrastructure in far west Glendale. In this scenario every current customer would bear the associated costs.
As a franchisee of the city EPCOR will be required to pay the city three percent (3%) of its annual gross (not net) receipts. The estimated annual payment to the city is $825,612.
It’s a win-win for the city and for EPCOR. I would recommend a ‘yes’ vote.
Please note my previous blog presented information not just on this issue but on the 4 bond questions that are on the ballot.
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If these are not passed, where will the money come from? What will the cost be to property owners, both immediate increase in property tax as well as anticipated increase in the future?
If the 4 bond approval questions are not voter approved most of the projects listed will be scrapped or delayed for about 10 years or reduced in scope. Council recently passed a resolution to not raise property taxes. My guess is without bond approval (staggering the issuance of bonds to make sure property taxes do not go up) many of these necessary projects will not be constructed.
Thank you. I decided no for all 4. My thought is that while I see the value forimprovements,prefer no additional debt for now. Revisit in 1 to 2 years. Thank you
I understand. Just wanted to make sure you understood that no new bonds will be issued until others are paid off. That is the action that provides capacity without raising property tax.