Let's GO Hollywood Bond
The City of Hollywood is exploring a General Obligation Bond referendum.
FREQUENTLY ASKED QUESTIONS
What is the Let's GO Hollywood Bond Initiative?
Let's GO Hollywood is a wide variety of public improvement projects proposed to be funded by a General Obligation Bond of approximately $150 million. The improvements can be divided into three broad categories:
- Streets, Neighborhood Investments & Public Facilities - approx. $72 million
- Public Safety - approx. $63 million
- Parks & Recreation - approx. $15 million
Through public input, a working project list was complied and presented to the City Commission during a March 21st workshop. The Commission will approve the final project list along with working that will appear on the election ballot that goes before all voters within the City. If approved by voters, there will be a Citizen's Oversight Board appointed to monitor the implementation of GO Bond projects. Projects would be implemented during the next several years city-wide.
How will it be funded?
Let's GO Hollywood will be funded through a General Obligation Bond (GO Bond). A GO Bond is one way cities fund major construction projects such as roads, parks, drainage, and/or buildings. They are backed by the full faith and credit of the City. Let's GO Hollywood Bond would be a 25 year bond that would be repaid through an additional percentage on your tax bill. For a $150 million bond, the owner of a home with an assessed value of $165,000 (the average assessed value in Hollywood) would pay an estimated $104 more per year. General Obligation Bonds require voter approval.
Why Is a GO Bond Being Proposed?
The City of Hollywood maintains more than 85 facilities and parks, 400+ miles of streets and alleys, 301 miles of sidewalks and 5+ miles of beach. Each year the City adopts a 5-year plan to address large scale maintenance projects, renovations and construction of new facilities. This allows the City to plan funding for maintenance of its basic infrastructure such as street resurfacing, sidewalk repair, facility upkeep, etc.
The City uses various sources of funding to pay for the projects. Such funding sources include:
•Debt Financing (borrowing money)
•Charges for Services
•State and Federal Grants
Even with these sources of revenue, the City currently does not have available funds to complete many proposed improvement projects. Debit financing has been the primary mechanism for paying for large, City-wide projects. The interest and principal (debt service) on debt financed projects is repaid by the General Fund Operating Budget over a period of time. The City has the ability to pay for debt financing but, if you all add in paying for the annual debt service too, that figure limits the amount of funding available for capital improvement projects in any one year. Bond financing allows cities to spread the cost for large projects out over many years.
Will My Taxes Go Up?The millage rate will not change as a result of the bond being issued. The GO Bond is structured in a manner that will cap the tax rate.
What Are Our Options?
Over time, the millage rate is expected to decrease as property values increase. Without the GO Bond, the City may eventually have to raise the operating millage rate to address the needed projects or forgo many of these projects.
What Can Taxpayers Expect in this Process? City staff has held multiple community informational meetings with neighborhood and business associations over the past several months as part of the planning process. A public education effort will take place to make sure voters have the information they need to vote on the Let's GO Hollywood Bond initiative. The public must vote on authorizing the City to acquire bonds; therefore a referendum would appear on a future election ballot for voters of the City to decide.
When Would I See The Results of the GO Bond?
If approved by voters, the first wave of projects can be completed in approximately 3 years. Bonds can be issued to complete projects until we reach the amount approved by voters.
What Areas Will Be Impacted?
In 2004 Hollywood voters approved the issuance of $53,680,000 General Obligation Bonds. The 25 year bonds were issued on June 3, 2005 at a interest rate of 3.0% - 5.0%. On July 9, 2015 a note was issued refunding the bonds to secure a lower, fixed interest rate of 2.92%. The note is set to mature on June 1, 2030.
Funds were used to finance the construction of improvements to parks throughout the City including large scale projects such as the construction of the Fredd Lippman Multi-Purpose Senior Center, Sal Oliveri/Veterans Park, the Boulevard Heights Community Center, Hollywood West Sports Fields, and the construction of a new Fire Station on Federal Highway, as well as a complete renovation of Rotary Park and improvements to fire rescue and public safety facilities and equipment and technology upgrades. Below are some examples of the accomplishments from the GO Bonds: