i.4.6 What Financing Options are Available?

i.4.6 What Financing Options are Available?

The list below (and Chapter 3 – Types of Debt Obligations Issued by Public Agencies) identifies the most common types of debt obligations that public agencies may use to finance capital improvements and operating capital (marked with an asterisk).

The list is organized by three essential characteristics of debt: (1) type of security and source of repayment, (2) interest rate and payment term of the obligation, and (3) tax status. This approach recognizes actual differences in the authority, security or source of repayment that account for the risk and cost of different types of debt. It also avoids creating artificial differences based on nomenclature.

DEBT TYPES BY SECURITY OR SOURCE OF REPAYMENT

• Local General Obligation Bonds (Section 3.3.1)

• General Fund Obligations
  
  1. Lease Revenue Bonds and Certificates of Participation (Section 3.3.2.1)
     
     
  2. Pension Obligation Bonds* (Section 3.3.2.2)
     
     
  3. Tax and Revenue Anticipation Notes (TRANs) and Revenue
     Anticipation Notes (RANs)* (Section 3.3.4)
     
     
  4. Teeter Bonds* (Section 3.3.5)

• Enterprise Fund Debt Obligations (Section 3.3.6)

• Special Assessments, Special Taxes, and Tax Increments
  1. Special Assessment Bonds (Section 3.3.7.1)
     
     
  2. Mello-Roos Bonds (Community Facility Bonds) (Section 3.3.7.2)
     
     
  3. Redevelopment Agency Debt (Section 3.3.7.3)
     
     
  4. Sales Tax Revenue Bonds (Section 3.3.3)
     
     
  5. Enhanced Infrastructure Financing District Bonds and Infrastructure Financing Bonds (Section 3.3.7.4)

• Single Family Mortgage Revenue Bonds (Section 3.3.8)

• Conduit Revenue Bonds
  1. Exempt Facilities Revenue Bonds (Section 3.3.9.1)
     
     
  2. Small-Issue Industrial Development Bonds (Section 3.3.9.2)
     
     
  3. Health Care Conduit Bonds (Section 3.3.9.3)
     
     
  4. Education Conduit Bonds (Section 3.3.9.4)
     
     
  5. Multifamily Housing Conduit Bonds

• State General Obligation Bonds

DEBT TYPES BY INTEREST RATE AND PAYMENT TERMS

• Long Term, Fixed Rate Bonds

• Long Term, Variable Rate Bonds

• Commercial Paper

DEBT TYPES BY TAX TREATMENT

• Taxable Bonds

• Alternative Minimum Tax (AMT) Bond

• Non AMT Tax Exempt Bonds

UNIQUE PUBLIC AGENCY FINANCINGS TO ADDRESS LEGAL CONSTRAINTS

• Financing Leases

• Installment Sales Agreements

• Certificates of Participation (typically used to securitize financing leases and installment sales agreements)

• Joint Powers Authority Bonds (typically used to securitize financing leases and installment sales agreements)

OTHER TYPES OF FINANCINGS

• Direct Loans

• Direct Leases

• Bond Anticipation Notes (BANs) and Grant Anticipation Notes (GANs)

• Other Tax and Fee Secured Debt

• Asset Securitization

• Refunding Bonds

• Pool Bonds