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3 answers

Yes. In the US, that is usually what tax free municipal bonds are used for.

2007-04-12 02:09:00 · answer #1 · answered by regerugged 7 · 0 0

Yes they can. Usually they use General Obligation Bonds. There are others out there that can be used. Generally the city will us a financial adviser firm to research the best options for the city and report back to the council with their recommendation as to the best bond rate to give the city and it's tax payers the best deal. One thing to remember when selling bonds, they can not bond the entire project. Depending on the type of bounds used will determine the percentage of bonds that can be used for the project.

2007-04-12 02:14:14 · answer #2 · answered by Realist 4 · 0 0

If the capital project will generate revenues, the city can sell Industrial Revenue bonds that do not result in any tax increases. If the project will not generate revenue, the bonds would be general obligation bonds. G.O. bonds result in a temporary tax increase in either property taxes or sales taxes.

2007-04-12 03:07:09 · answer #3 · answered by David M 7 · 0 0

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