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FINANCING ALTERNATIVES CURRENTLY IN USE BY THE CITY OF BURLESON

TYPES OF FINANCING APPLICATIONS POSITIVE POINTS NEGATIVE POINTS

Pay as You Go-Current Operating
Revenues

No interest or issuance costs; lesser Not normally feasible for larger projects;
Financing capital purchases out of current Recurring expenses (vehicles) or small demands on management 's time and possibly slower completion of projects;
revenues during the life of the project projects shorter time period necessary to initiate current users paying to benefit future
projects users

General Operating Bonds

Faith and credit financings requiring Lowest interest rate, flexible terms; no Issuance costs higher than short term type
preparation of offering statements and Medium and large projects restrictive covenants involved; requires of financing, but lower than revenue
bond ratings voter approval confirming public support bonds; requires time and expense for

Revenue Bonds
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Pledge of designated future revenues, High interest and issuance costs;
requires preparation of complex offering Large projects Not faith and credit pledged; voter restrictive covenants involved; evidence of
statements, bond ratings and feasibility approval not required public support not obtains
studies
Combination Tax & Revenue Certificates
of Obligations

Direct obligations of the City, payable from
the levy and collection of a direct and Not faith and credit pledged; voter High interest and issuance costs;
continuing ad valorem tax. May also be Large projects approval not required restrictive covenants involved; evidence of
secured by a limited pledge of surplus net public support not obtains
revenues of the City