Page 137 - Burleson FY22 City Budget

Negative Points Not normally feasible for larger projects;possibly slower completion of projects; current users paying to benefit future users. Issuance costs higher than short term type of financing, but lower than revenue bonds;requires time and expense for voter approval. High interest and issuance costs; restrictive covenants involved; evidence of public support not obtained. Higher interest and issuance cost; restrictive covenants involved; evidence of public support not obtained.

FINANCING ALTERNATIVES CURRENTLY IN USE BY THE CITY OF BURLESON

Positive Points No interest or issuance costs; lesser demands on management's time and shorter time period necessary to projects initiate Lowest interest rate, flexible terms;no restrictive covenants involved;requires voter approval confirmingpublic support. Not faith and credit pledged; voter approval not required. Not faith and credit pledged; voter approval not required.

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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.