The Omaha City Council recently approved placing a $333.4 million general obligation bond referendum on the Nov. 5 general election ballot. These bond proceeds are intended to fund various projects including sewer construction, streets and parking, public safety and convention center facilities, parks and recreation, highways and bridges, and police and firefighting equipment. According to Omaha Finance Director Stephen Curtiss, these projects are part of the city’s capital planning process for the next four to five years.
The city’s draft $3.1 billion capital improvement program for 2025 to 2030 consists of approximately 70 projects, with at least four of them being new ventures, representing an increase from the previous year’s program valued at $2.7 billion. The program outlines that about 60% of the revenue sources in the CIP are derived from the sewer revenue improvement fund, while 24% come from general obligation bonds. It is noted that an average of approximately $122.28 million in GO bonds will need to be issued each year for capital improvements from 2025-2030.
Approximately 58% of the city’s bond dollars will be allocated towards transportation improvements, while the remaining amounts will be distributed among public facilities, environment, parks and recreation, and public safety. It is mentioned that Omaha voters have historically approved GO bond ballot measures for capital improvements at intervals of four years. In May 2022, local voters authorized $260.3 million in GOs for projects. Additionally, the council held a public hearing on $50 million of special tax revenue redevelopment bonds which do not require voter approval.
Omaha faces challenges such as the limited space for future expansion due to geographical barriers, further exacerbated by the city’s current pattern of growth through annexation. The city’s strategic plan for Urban Core highlights the decline in downtown jobs since 1963 and the necessity for internal growth and redevelopment to sustain future progress. The plan underscores the importance of revitalizing the urban center to counteract potential limitations on expansion.
Omaha issued various purpose bonds totaling $94.5 million in October 2023, rated Aa2 by Moody’s Ratings and AA-plus by S&P Global Ratings. The funds were allocated towards equipment purchases and improvements in streets, highways, public safety services, public facilities, sewers, and parks and recreation facilities. Subsequent bond issuances in early 2024 and Series 2024A lease revenue bonds were also well-received, with Moody’s assigning Aa2 ratings and S&P assigning AA-plus ratings, both with stable outlooks. S&P’s credit analyst Malcolm Simmons commended Omaha’s economic status and growth potential, attributing it to strong employment, housing market, affordability, and population growth.
While the approval of the general obligation bond referendum signifies a significant step towards enhancing Omaha’s infrastructure and services, critical considerations must be made regarding the city’s long-term growth strategies, financial stability, and urban development plans. Emphasis should be placed on efficient utilization of bond proceeds, addressing current challenges to expansion, and fostering sustainable economic development for the benefit of the community.