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 “Emergency” conditions require a capital improvement to be
funded rapidly;

 Financial opportunities unexpectedly arise to leverage funds
from other entities and reduce the City’s capital cost for a
community improvement;

 A capital improvement is a revenue-producing facility, but
due to the nature of the project or the time it takes for the
facility to become operational and produce revenues, the
improvement may not generate sufficient revenues throughout
the life of the improvement to support the indebtedness secured
solely by the revenues to be produced by the improvement;

 It would be more economical to issue Certificates of
Obligation rather than issuing revenue bonds; and

 The timing of the construction of a capital improvement and the
expense of calling a bond election for a single proposition
would, in the opinion of staff and with the approval of the
Council, warrant the issuance of Certificates of Obligation to
finance the capital improvement.

4. Tax Notes

Tax notes may be issued without a public election to finance the
construction, acquisition, and expenses associated with placing a
capital asset into service. Under State law, the issuance of tax notes
must be approved as to legality by the State Attorney General, and
must mature no later than the seventh anniversary of the date that the
Attorney General approves the tax notes. Tax notes will be issued
taking into account the useful life of the capital asset to be financed,
and consideration of the economies that the City may achieve
through the issuance of obligations with a shorter term of maturity
than that typically associated with a bond amortization structure (see
D. Debt Structure, below). The issuance of tax notes may be
substituted for the issuance of Certificates of Obligations; however,
the same principles apply.

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