City of Lincoln – Stormwater Management Bond Issue

The Wording

City of Lincoln – Stormwater Management Bond Issue

Shall the City of Lincoln, Nebraska, issue its general obligation bonds in the stated principal amounts of not to exceed $13,900,000 for the purpose of paying costs incident to engineering, acquiring, constructing and/or furnishing improvements and betterments to and extension of the City’s storm water drainage and flood management system and measures to achieve state and federal water quality standards; such bonds to be dated at the time of their issuance and become due and payable on such dates, bear interest at such rates, and have such other terms as may be fixed by the City at the time of their issuance; and

Shall the City cause to be levied and collected annually a tax, in addition to all other taxes, upon the taxable property in the City sufficient in rate and amount to pay the principal of and interest on said bonds as the same become due and payable?

FOR said General Obligation Bonds and Tax Levy.

AGAINST said General Obligation Bonds and Tax Levy.

Our Explanation

According to https://www.lincoln.ne.gov/City/Departments/LTU/Utilities/Watershed-Management. "The Watershed Management Division encourages sustainable growth by upholding responsible standards that maximize safety, minimize flood damage and conserve natural resources to ensure quality of life for future generations."
 
This $13.9 million bond is in a series of bonds that date back to 1977, with the most recent one being in 2019.  Typically as each bond is paid off, a new one takes its place with little effect on the tax levy.  At this point 9 bonds have been retired and 3 of the remaining 6 have been refinanced with lower interest rates.  The personal impact of this bond would be approximately $9.65 per household for a median valued home worth $281, 610.
 
The purpose of the 2024 bond includes "Urban Drainage Projects" in 4 specific areas identified as needing to reduce flooding in streets and neighborhoods.  It also has "Stream Stabilization Projects" to reduce stream erosion, improve water quality, and protect natural resources.  This is to be managed in partnership with Lower Platte South NRD.  There are 5 specific areas targeted.  "Parks Drainage Projects" also have 4 areas to improve the use and functionality of parks infrastructure.  Some other slated projects relate to Urban Drainage studies, Street Drainage, Deadmans Run Flood Reduction, Citywide Inlet Top Repairs, and purchasing some street sweepers!  See more details at https://www.lincoln.ne.gov/City/Departments/LTU/LTU-Projects/WSM  Deciding which project to tackle next works within The Comprehensive Watershed Master Plan adopted in 2022.
 
These Capital Improvement Projects receive no direct city funding, so depend on the bonding method for revenue.  Sometimes a partnership with Lower Platte South Natural Resources District or a grant might provide some extra revenue.  
 
Those who oppose the bonding would prefer to not use money on paying interest.  They see it forces communities to 20 years of commitment to pay for the principal and interest.
 
Those who support this bond issue suggest it has worked well for 40 years and suggest the amount of interest paid might be about the same as how much inflation would add to the cost of projects if money were saved up in advance.  Over the years, Lincoln has been spared the devastating flooding of other locations.
 
Voting FOR the bonding will typically result in less than $1.00/month tax increase.
Voting AGAINST the bonding would change which projects could be accomplished.