3.7.4 Other Tax and Fee-Secured Debt

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, such as parcel taxes, fines, concession fees, admissions and event taxes, parking fees and taxes, utility user taxes, transient occupancy taxes, and license fees. Because investors are generally unwilling to assume significant risk that a key (or the sole) source for debt repayment may be subject to legal challenge, it is often necessary to obtain a judicial determination that the fee in question is not a “tax” or to have followed meticulously the requirements for approval of a special tax, as applicable. See Section 1.4, Local GovernmentRevenue Sources – Security for and Repayment of Debt.