SAFFORD — Faced with a $13 million bill when it comes to pensions for public safety personnel, the Safford City Council is being asked to consider bonding to pay off the debt.
The City Council will consider the request of staff during Monday’s regular meeting.
Staff is recommending the issuance of bonding in the amount of $12,730,000. The bonds would be paid off over 23 years, ending in 2046, and paid for with revenue from excise taxes and state shared revenues. Under the terms proposed, the city would not be required to pay from ad valorem property taxes.
Interest is expected to cost the city about $6,497,534, for a total indebtedness of $19.2 million over the 23 years.
The city’s excise taxes come from sales and utilities. However, the portion of the 5 percent transient occupancy tax — also known as the bed tax — that is used to promote tourism to the city under contract with the Graham County Chamber of Commerce could not be used to repay the bonds per state statute.
The council will consider staff’s recommendation at Monday’s meeting, which begins at 6 p.m. in the Safford City-Graham County Library’s programming room.
