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Pima Supervisors Weigh New Debt for Critical Upgrades as Marana Eyes Street Revamp

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Pima Supes to vote on new debt to fund needed upgrades; Marana looks at streets plan

Voters in Pima County have persistently denied funding for infrastructure improvements through proposed bond programs. Despite these rejections, ongoing erosion and infrastructure deterioration demand immediate attention and investment. As a result, the county is seeking alternative funding methods to address these needs.

This Tuesday, the Board of Supervisors is set to vote on issuing $40 million in certificates of participation and another $54 million in sewer system revenue bonds, both without necessitating tax or rate increases. The certificates will finance essential upgrades to the Medical Examiner’s Office, the Superior Court building, and the San Xavier substation of the Sheriff’s Department.

The structure of a typical certificate of participation allows buyers to receive a portion of parking garage fees as compensation for their initial investment. In the event of government default, the certificate holder claims ownership of the parking garage. Moreover, the income from these certificates can be tax-exempt, depending on the holders’ residency.

As part of the financial strategy, the county plans to utilize general fund money and other appropriate funds to repay the debt incurred from these projects. Notably, the county is putting up several key properties— including the Administration West Building and the Adult Detention Center—as collateral.

With various uncertainties lingering regarding the future of the jail, the potential for defaulting on $3 to $5 million annually remains low, given the county’s apparent flexibility in sourcing funds. The sewer revenue bonds aim to upgrade the existing sewer system and refinance current debts to reduce costs.

Currently, the county is repaying a significant $149 million in annual debt. This financing is generally viewed in a short-term paradigm, while traditional long-term debt is typically structured over 25 to 40 years.

Additionally, the Board of Supervisors plans to approve a Citizens Participation Plan to guide how the Tucson-Pima County Consortium develops annual action plans for maintaining federal funding. Tucson qualifies for block grants from the U.S. Department of Housing and Urban Development (HUD), which requires extensive planning and public involvement.

In an effort to engage residents, the county is strategizing on outreach methods to ensure community input. This includes public hearings and online solicitations tailored to accommodate individuals with various scheduling and physical accessibility needs.

Moreover, the supervisors will also vote on allowing County Administrator Jan Lesher to move forward with agreements linked to a $30 million upgrade of “middle-mile” Internet services, primarily funded by the U.S. Department of Commerce. This project aims to enhance connectivity in the rural areas surrounding Tucson and will be managed without waiting for full board consent.

In Marana, the Town Council is poised to vote on a transportation master plan as the town continues to expand rapidly. This growth necessitates a comprehensive approach to increasing road capacity, along with improved pedestrian safety measures as new developments arise.

As discussions regarding transportation unfold, the distinction between transportation and transit is acknowledged—transportation encompasses all methods of movement, while transit specifically refers to public transport modalities. The plan embraces inter-modal transit solutions and highlights the importance of land-use planning in facilitating efficient transportation across the growing town.

In South Tucson, city council members will consider hiring a consultant to reform the aging fire department, which lacks sufficient funds to modernize. The discussion will also address a hostile work environment claim, with limited employees heightening the likelihood that it involves a higher-up, necessitating confidential discussions behind closed doors.

In nearby Santa Cruz County, the Board of Supervisors is expected to vote on a contract for body cameras for sheriff deputies and discuss an automated external defibrillator donation from the Tubac Pickleball Club.

Finally, Pima Community College District’s Governing Board will gather for a special meeting on preparations for an upcoming accreditation evaluation, ensuring thorough compliance due to the college’s past challenges with accreditation processes. Conversely, the Oro Valley Town Council is expected to meet, focusing mostly on ministerial tasks without substantial public interests.