T

tax and fee secured debt

• 1.4 Local Government Revenue Sources -Security for and Repayment of Debt
  Sources of revenue available to local governments to repay debt obligations.
• Figure 1-1 Public Agency Revenue Sources by Category
• 1.4.6 Special Taxes
  Sources of Revenues securing debt obligations: Special taxes defined
• 1.4.8 Fees and Charges
  Sources of Revenues securing debt obligations: Fees and charges defined
• 1.4.9 Property-Related Fees and Charges
  Sources of Revenues securing debt obligations: Property related fees and charges defined
• 3.7.4 Other Tax and Fee-Secured Debt
  Public agency bonds and other debt obligations may also be secured by taxes and fees levied by the public agency.

tax and revenue anticipation notes (TRANs)

• tax and revenue anticipation notes (TRANs)
• i.4.5 Issuing Tax-Exempt Debt
• 1.2.4.1 Current Fiscal Year Exception
  Debt limit exception based on the fact that the public agency can pay the debt with funds it already has or will receive during the current fiscal year.
• 1.4 Local Government Revenue Sources -Security for and Repayment of Debt
  Sources of revenue available to local governments to repay debt obligations.
• 1.4.3 Ad Valorem Real Property Taxes
  Sources of Revenues securing debt obligations: Ad Valorem tax defined
• 1.4.5 General Taxes
  Sources of Revenues securing debt obligations: General taxes defined
• 2.2.2.2 Short-Term Debt
• 3.3.4 TRANs and RANs
  Tax and revenue anticipation notes (TRANs) and revenue anticipation notes (RANs) may be used to finance current fiscal year expenses.
• 3.7.7 Pool Bonds
  Pool bonds are bonds issued to purchase the underlying bonds issued by pool members. TRANS are an example of a pool bond.
• 4.5 Cash Flow Borrowings
  Public agencies may find themselves temporarily short of cash to finance operations and may need to address the shortfall with a short-term financing called a “cash flow borrowing.”
• 4.9.1.2 6-month Expenditure Exception
  Exception to arbitrage rebate requirements in Tax Code.
• 5.2 Competitive Sales
  The sale of debt using a competitive pricing approach.
• A Legal References
  Index and links to existing laws concerning the financial operations of California public agencies.
• B.1.5.1 Tax and Revenue Anticipation Notes

tax certificate

• tax certificate
• i.4.1.2 Issuance Phase
• 4.11 Bank Qualified Bonds
  The ability for banks to benefit from tax exempt bonds under the Tax Code.
• 8.3 Post-Issuance Federal Tax Law Requirements (See “legal documents”)
  Compliance with tax covenants contained in the Tax Code is required while the bonds are outstanding in order to maintain the bonds’ “tax exempt” status.

tax code

• tax code
• i.3.2.2 Legal Responsibilities Under the IRS Tax Code
• i.4.5 Issuing Tax-Exempt Debt
• 4 Federal and State Tax Law Requirements (See “Internal Revenue Code of 1986”)

taxes

• tax
• i.4.2.1 Decision #1 – Choose the funding source
• 1.4 Local Government Revenue Sources -Security for and Repayment of Debt
  Sources of revenue available to local governments to repay debt obligations.Sources of revenue available to local governments to repay debt obligations.
• Figure 1-1 Public Agency Revenue Sources by Category
• 1.4.1 Determining the Category of Revenues
  Differentiating “taxes,” “assessments” and “fees and charges.”
• 1.4.3 Ad Valorem Real Property Taxes
  Sources of Revenues securing debt obligations: Ad Valorem tax defined
• 1.4.4 Ad Valorem Real Property Taxes Securing Voter-Approved Obligations
  The use of Ad Valorem property taxes to secure debt obligations.
• 1.4.5 General Taxes
  Sources of Revenues securing debt obligations: General taxes defined
• 1.4.6 Special Taxes
  Sources of Revenues securing debt obligations: Special taxes defined
• 1.4.8 Fees and Charges
  Sources of Revenues securing debt obligations: Fees and charges defined
• 1.5.2 Charter City Financing
  How the authority of a charter city may affect its debt financings
• 1.7.1 Proposition 13 (1978), Jarvis-Gann Initiative
• 1.7.2 Proposition 4 (1979), Gann Limit Initiative
• 1.7.4 Proposition 62 (1986), Voter Approval of Taxes Act
• 1.7.5 Proposition 218 (1996), Right to Vote on Taxes Act
• 1.7.7 Proposition 26 (2010) Supermajority Vote to Pass New
• 3.3.1 Local Agency General Obligation Bonds
  General obligation bonds (GO bonds) issued by California local government entities are payable from unlimited ad valorem taxes on real property
• 3.3.2 General Fund Obligations
  Debt obligations backed by a public agency’s general fund.
• 3.3.3 Sales Tax Revenue Bonds
  Debt obligations that are payable from and secured by revenues from the imposition of a sales and use tax, or a transaction and use tax, on retail transactions
• 3.3.7 Special Assessments, Special Taxes, and Tax Increments
  Debt obligations secured by assessments, special taxes, or tax increment.
• 3.3.7.2 Mello-Roos Bonds (Community Facilities Districts)
  Mello Roos bonds are payable from special taxes imposed on real property.
• 3.7.4 Other Tax and Fee-Secured Debt
  Public agency bonds and other debt obligations may also be secured by taxes and fees levied by the public agency.
• 4.1 California Tax Exemption
  State statutes providing for the issuance of bonds generally provide for the exemption of interest on the bonds from State of California personal income taxes, regardless of the federal income tax status of the bonds.
• 4.6.2 Private Security or Payment Test
  One of several tests of private activity or benefit.
• 4.6.3 Private Loan Test
  One of several tests of private activity Private benefit.
• A.1 California Consitutional Provisions Relating to Local Public Agency Debt
• A.5 Financing Tools Contained in Statute
• A.6 General Bond Statutes
• B.1.1.2 Proposition 13
• B.1.3 School District Financing Options
• B.1.3.1 Local General Obligation Bonds
• B.1.3.1.1 Process for Approval of Local School District GO Bonds
• B.1.3.1.2 GO Bond Structures
• B.1.3.1.3 Policy Considerations for Issuing GO Bonds
• B.1.4.3 Parcel Taxes
• B.1.6.2 Nonprofit and Religious School Facilities
• D.1.2 Process

• what is tax?
  • 1.4.2 What Is a Tax?
    Series of questions used to determine “what is a tax.”
• voter-approved limitations
  • 1.4.3 Ad Valorem Real Property Taxes
    Sources of Revenues securing debt obligations: Ad Valorem tax defined
  • 1.6.1 Initiative Power and its Impact on Debt
  • 1.7 Historical Overview of Voter-Approved Limitations on Local Government Revenues
    Summary of state level initiatives directed at the fiscal affairs of California state and local government.
  • B.1.4.3 Parcel Taxes

tax exempt debt

• i.4.1.2 Issuance Phase
• i.4.2.4 Decision #4 – Select an interest rate type
• i.4.2.6 Decision #6 – Decide whether the debt will be tax exempt
• i.4.5 Issuing Tax-Exempt Debt
• i.4.5.4 Requirement #4 – Adhere to procedural and other rules
• 3.1.3 Tax Treatment
  Tax-exempt or taxable
• 3.7.6 Refunding Bonds
  Refunding obligations are any municipal debt obligations used to pay principal, interest and premium on other municipal debt.
• 4.13 Tax Risk
• 8.2.2 Maintaining Tax-Exempt Status
  Recordkeeping essential to maintaining tax exempt status of bonds.
• 8.2.6 Compliance Checklists
  Recordkeeping essential to maintaining tax exempt status of bonds.
• 8.3 Post-Issuance Federal Tax Law Requirements
  Compliance with tax covenants contained in the Tax Code is required while the bonds are outstanding in order to maintain the bonds’ “tax exempt” status.
• 9.5.1 Arbitrage Rebate and Yield Restriction

tax exempt requirements

• i.3.2.2 Legal Responsibilities Under the IRS Tax Code
• i.4.2.6 Decision #6 – Decide whether the debt will be tax exempt
• i.4.5 Issuing Tax-Exempt Debt
• 4.1 California Tax Exemption
  State statutes providing for the issuance of bonds generally provide for the exemption of interest on the bonds from State of California personal income taxes, regardless of the federal income tax status of the bonds.
• 4.3 What is an Issue of Debt?
  For interest on a bond to be tax exempt, the bond must be debt under general federal tax law principles.
• 4.10.1 Registration
• 8.2.2 Maintaining Tax-Exempt Status
  Record keeping essential to maintaining tax exempt status of bonds.
• C.2 Regulatory Resources

• information reporting
  • 4.10.3 Information Reporting Requirements
• limitation on pooled financing loans
  • 4.10.4 Limitations on Pooled Financing Loans
• no federal guarantee
  • 4.10.2 No Federal Guarantee
• overburdening requirements
  • 4.4.1 Issue Sizing and Term
    Limits on issue size and term pursuant to the Tax Code.
• registration
  • 4.10.1 Registration

tax law compliance (See “bonds fund management”)

tax risk

• 4.13 Tax Risk
• 6.1.4.1 Recent SEC Enforcement Focus

tax treatment

• i.4.6 What Financing Options are Available
• 2.1 Overview
  Factors determining structure, including issuer, term, source of repayment, and debt limits.
• 3.1 Introduction: What Constitutes A “Type” Of Debt Obligation
  Features of a debt obligation
• 3.1.1 Security and Source of Payment
  Source of funds repaying a debt obligation
• 3.1.3 Tax Treatment
  Tax exempt or taxable
• 3.4.2.1 Index Debt
  The interest rate payable on a debt obligation is adjusted periodically in accordance a published index.
• 3.5 Tax Treatment of Municipal Bonds
  A bondholder’s “after tax” return on a bond depends in part upon how interest on the bond is treated in calculating the bondholder’s income for federal and state income tax purposes.
• 4.4 Capital Expenditure Financings
  Proceeds of tax exempt bonds will only be treated as spent when used to finance or reimburse capital expenditures.

• California tax exemption
  • i.4.2.6 Decision #6 – Decide whether the debt will be tax exempt
  • 4.1 California Tax Exemption
    State statutes providing for the issuance of bonds generally provide for the exemption of interest on the bonds from State of California personal income taxes, regardless of the federal income tax status of the bonds.

taxable bonds

• taxable security
• i.4.6 What Financing Options are Available
• 2.3.1.3 Optional Redemption
  Optional redemption of principal
• 3.5 Tax Treatment of Municipal Bonds
  A bondholder’s “after tax” return on a bond depends in part upon how interest on the bond is treated in calculating the bondholder’s income for federal and state income tax purposes.
• A.6 General Bond Statutes

Teeter bonds

• i.4.3 Steps Public Agencies Must Take to Use Debt Financing
• i.4.6 What Financing Options are Available
• 3.3.5 Teeter Bonds
  Teeter bonds are secured by a pledge of the delinquent property tax receivables and are generally also payable from the county’s general fund.
• 3.3.7.1 Assessment Bonds
  Local governments issue assessment bonds to pay for public infrastructure that confers a special benefit upon real property and are payable from assessments imposed on the real property.
• 7.1.4 Mello-Roos Community Facilities District Reports

TEFRA

• TEFRA Notice, Hearing and Approval
• 4.7.2.2 TEFRA Public Requirements
  Requirements of private activity bonds

tender option (See “put or tender option”)

• tender option
• demand bond
• tender
• tender offer

term bonds

• term bonds
• 2.2.2.1 Long-Term, Fixed-Rate Debt
• 3.1.2 Payment Term and Interest Rate
  Terms of the repayment
• 3.4.1 Long-Term, Fixed-Rate Debt
• 5.2.3 Documentation for a Competitive Sale

termination risk

• 2.3.3 Interest Rate Swaps and Synthetic Structures
  “Changing the substantive financial terms of a debt from a fixed rate obligation to a variable rate obligation”

transparency (See “accountability and transparency”)

trustee

• trustee
• i.2.3 Decision #3 – Can the municipal market help the public agency meet its capital financing needs?
• i.4.1.2 Issuance Phase
• i.4.1.3 Post-Issuance Phase
• 2.3 Structural Factors Addressing Risk and Investor Interests
  Ways the structure of a debt obligation may address risk and investor interests.
• 2.3.2.3 Letters of Credit
  Liquidity Support: Letter of Credit
• 2.4.1 Application of Proceeds
  How the proceeds of debt may be applied.
• 2.4.4 Debt Service Reserve Fund
  The use of a debt service fund to repay principal and interest on a debt obligation.
• 2.4.8 Events of Default and Remedies
  Actions to be taken in events of default and the remedies to be applied
• 2.4.8.2 Remedies
  Different types of remedies in the case of a default
• 2.4.9 Fiduciary Rights and Duties
  The fiduciary provisions in bond documents set forth the qualification requirements for fiduciaries and the terms of their appointment.
• 3.1.6 Types of Debt Instruments
  Basic categories of debt instruments: bonds, notes, direct leases, and certificates of participation
• 3.6.3 Certificates of Participation
  A debt obligations that involve selling the the right to receive the payments under a lease agreement to other parties.
• 3.6.4 Joint Powers Agency or Authority (JPA) Bonds and Other Issuances
  Due to the extensive bond issuance authority afforded JPAs under government code, JPAs are a common vehicle for issuing bonds that are backed by either a lease or installment sale agreement.
• 3.7.6 Refunding Bonds
  Refunding obligations are any municipal debt obligations used to pay principal, interest and premium on other municipal debt.
• 4.4.2 Costs of Issuance
  Cost of issuance pursuant to the Tax Code.
• 4.6.1.1 De Minimis Private Business Use Exceptions
• 5.4.1 Direct Costs of Issuance
• 7.1.5 Marks-Roos Reports
• 8.2.4 Accounting Records
  Record keeping essential to maintaining tax exempt status of bonds.
• 8.4 Continuing Disclosure
  Public agencies take on certain responsibilities to file information regularly when they issue municipal securities, including an annual report and notices of certain events.
• 8.4.2 Event Notices
  Event notices required by SEC Rule 15c2-12.
• 9.1 A Team Approach to Investing Bond Funds
  Designing and implementing an investment strategy that maximizes earnings, while ensuring the safety and liquidity of invested funds and complying with federal tax law, is an important component of minimizing overall, or “net,” borrowing costs.
• 9.3.1 Statutory Authority
  Controlling statutory authority for investment of bond funds.
• 9.3.2 Bond Document Provisions
  Role of bond documents in the investment of bond funds.
• 9.4.2 Investments Specific to Bond Funds
• 9.5.2 Investment Considerations
  Issuer considerations regarding investment of bond funds.