The Omaha City Council recently gave the green light to place a $333.4 million general obligation bond referendum on the upcoming Nov. 5 general election ballot. These GO bond funds are earmarked for various projects across the city, including sewer construction and improvements, streets and parking, public safety and convention center facilities, parks and recreation, highways and bridges, as well as police and firefighting equipment. This decision is part of the city’s capital planning process set to span the next four to five years.
Key Details of the Capital Improvement Program
Omaha’s draft $3.1 billion capital improvement program for the period of 2025 to 2030 lists about 70 projects, with at least four of them being new additions compared to the previous year’s $2.7 billion program. The financing for these projects will be sourced from a variety of revenue streams, with 60% coming from the sewer revenue improvement fund and 24% from GO bonds. The program indicates that an average of approximately $122.28 million in general obligation bonds will need to be issued each year to support the capital improvements.
Around 58% of the city’s bond funding will be dedicated to transportation improvements, while the remaining portion will be spread across public facilities, environment, parks and recreation, as well as public safety initiatives. Omaha voters have a history of supporting GO bond ballot measures every four years, with the previous one totaling $260.3 million in May 2022.
Impact of Revenue Redevelopment Bonds
In addition to the GO bond referendum, the city council also conducted a public hearing regarding $50 million of special tax revenue redevelopment bonds. These bonds are backed by a community redevelopment tax and do not necessitate voter approval. The revenue redevelopment bonds would establish a community development agency, aligning with Omaha’s broader redevelopment efforts such as the Urban Core project.
An Urban Core strategic plan highlights concerning issues such as job losses in downtown Omaha since 1963 and limitations on the city’s expansion due to physical barriers. The planning department predicts that by 2040, Omaha will exhaust available land for development on its suburban outskirts. To adapt, the city must focus on revitalizing its urban center to drive future growth and development.
Recent Bond Issuances and Credit Ratings
Omaha has been active in the bond market, with recent issuances including various purpose bonds in October 2023 and special tax revenue and refunding redevelopment bonds in early 2024. Moody’s and S&P have assigned favorable ratings to these bonds, citing Omaha’s strong economic foundation supported by key institutions and a growing population as factors contributing to the city’s creditworthiness.
Omaha’s approval of the $333.4 million general obligation bond referendum underscores the city’s commitment to strategic growth and development over the coming years. By leveraging various funding sources and prioritizing key areas such as transportation, public safety, and urban revitalization, Omaha aims to address current challenges and pave the way for a sustainable future.