DeSoto FY21----FY22-Approved-Budget


DEBT TYPE DESCRIPTIONS General Obligation Bonds (GOs) A municipal bond backed by the credit and "taxing power" of the issuing jurisdiction rather than the revenue from a given project. These bonds may only be issued with approval of the majority of a popular vote approval through a referendum. Items on a bond referendum authorize a specific amount of bonded debt for particular purposes. Libraries, parks and public safety facilities are all examples of projects that could be financed with GO bonds. Tax levy p ledged as security for bonds. Certificates of Obligation (COs) Certificates of obligation (CO) can be issued without voter

approval, by ordinance approval by a vote of the city council upon recommendation by the Managing Director of Financial Services and City manager. COs may be used for smaller projects and emergency needs that could not have been foreseen in a bond election as well as projects that need to be completed regardless of voter approval, such as construction and rehabilitation of water and sewer lines, street construction and maintenance, etc. COs that carry only an ad valorem tax pledge can be used for land acquisition or to fund a legal judgment. COs that are backed by a revenue pledge as well as the tax pledge, can be issued for any lawful purpose. Tax levy and/or Revenue pledged as security for bonds. A lease/purchase financing arrangement that is structured to be in compliance with the Public Property Financing Act for the acquisition of Personal Property and Equipment. Alternatives for Lease/Purchase include Anticipation Notes, Tax Notes, Revenue Debt and Project Financing. A number of short-term instruments are used primarily to meet the cash flow needs of local governments. Revenue anticipation notes (RANs), tax anticipation notes (TANs) or simply tax notes, grant anticipation notes (GANs), and bond anticipation notes (BANs) provide government with cash to meet short-term cash needs while awaiting revenue from the applicable sources. Anticipation notes require approval of the legislative body; that approval typically expires if not used within a specified length of time since they are linked to a particular revenue source at a particular time. Tax levy and/or Revenue source used as pledge of Security. In Texas, maturities for any moneys used for short term operating expenses cannot extend beyond one year and must mature no later than the next fiscal year. Tax notes used for capital improvements cannot extend beyond seven years. Used to finance local public improvements, provided that improvement benefits the parcels of land to be assessed such as streets, streetlights, landscaping sidewalks and sewers.

Public Property Finance Contractual Obligations (PPFCOs)

Anticipation Notes

Assessment Bonds


Made with FlippingBook - professional solution for displaying marketing and sales documents online