APPENDIX B
Summary Table The following table summarizes the most commonly used financing alternatives:
CAPITAL FINANCING ALTERNATIVES FOR TEXAS CITIES & COUNTIES
Public Property Finance
Instrument
General Obligation Bonds
Certificates of Obligation
Contractual Obligations
Revenue Bonds (2)
Tax Notes
Lease Purchase
Purpose
General Purpose
General Purpose
Enterprise Systems
Personal Property
General Purpose
Real and Personal Property
Voter Authorization
Yes
No (1)
No
No
No
No
Source of Payment
Taxes
Taxes and/or Revenues
Revenues
Taxes
Taxes
Project Revenues (3) or M&O Fund Approximately 50 to 60 Basis Points Higher than General Obligation Bonds or Certificates of Obligation
Interest Rates
Strongest Credit Best Rates
Same as General Obligation Bonds
Approximately 10-15 Basis Points Higher than General Obligation Bonds and Certificates of Obligation
Comparable to General Obligation Bonds and Certificates of Obligation
Comparable to General Obligation Bonds and Certificates of Obligation
(1) Publication of notice required; petition during notice period could require election (2) Not typically available for counties (3) Certain personal property lease purchase obligations can be structured as ad valorem tax-backed
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