Page 120 - CityofMansfieldFY24Budget
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Contract Revenue Bonds City contracts with entities
Tax levy and/or revenue pledge as security
Ownership of title may occur with entity or
City
Special Obligation Facility:
Tax Increment Financing District (“TIF”) Development district established
Construction of improvements
Incremental increase in value property only
Taxable by TIF
Non-Profit Corporations Established corporations
Property Finance Authority Revenue pledge of the corporation
Mansfield Park Facilities Development Corp Covenant reporting
Mansfield Economic Development Corp First lien security with parity
Acquisition of real or personal property
Public/private infrastructure improvements
City may or may not own title
Specific services (can be taxable or non-taxable
to the bond holders.)
Public Improvement District (“PID”) Specific improvement
Securitized by pledged assessments
Specific benefactors
Other Credit Facility:
Capital Lease Annual tax or revenue appropriation
Tax-exempt or can be taxable
Acquisition of personal property
Able to refinance
Line of Credit Qualify statutorily
Immediate need for financing
Borrowings retired with bond proceeds
Fulfill bond reserve covenants
Borrowings repaid from current resources
Commercial Paper Revenue pledge as security
Demand from the market for small issuer
Commercial paper
Derivatives Minimize risk of market
Reduced costs versus fixed costs
Creates flexibility
Understood risk warrants the savings
Surety Bond & Bond Insurance Debt service is less than cost of insurance
Double AA rated insurer
Competitive offers from two insurers
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