Page 136 - Burleson FY22 City Budget

projects;possibly slower completion
of projects; current users paying to
Higher interest and issuance cost;
than revenue bonds;requires time
High interest and issuance costs;
Issuance costs higher than short
term type of financing, but lower
and expense for voter approval.
Not normally feasible for larger
evidence of public support not
evidence of public support not
restrictive covenants involved;
restrictive covenants involved;
benefit future users.
Negative Points
obtained.
obtained.
FINANCING ALTERNATIVES CURRENTLY IN USE BY THE CITY OF BURLESON
demands on management's time and
No interest or issuance costs; lesser
Not faith and credit pledged; voter
Not faith and credit pledged; voter
shorter time period necessary to
involved;requires voter approval
terms;no restrictive covenants
Lowest interest rate, flexible
confirmingpublic support.
approval not required.
approval not required.
Positive Points
projects
initiate
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Applications Recurring expenses (vehicles) or small projects Medium and large projects Large projects Large projects

Types of Financing

Revenues Pay as You Go-Current Operating Financing capital purchases out of current revenues during the life of the project. General Obligation Bonds Faith and credit financings requiring preparation of offering statements and bond ratings. Revenue Bonds Pledge of designated future revenues; requires preparation of complex offering statements, bond ratings and feasibility studies. Combination Tax & Revenue Certificates of Obligations Direct obligations of the City, payable from the levy and collection of a direct and continuing ad valorem tax. May also be secured by a limited pledge of surplus net revenues of the City.