DeSoto FY21----FY22-Approved-Budget

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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