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' Total Dabt <br />Eggible for Maximum What is risk and BurdenlWhat is <br />Goftal lJfe Span of Allowed Magnitude of Rate how will it be our Maximum __ Appropriate <br />___. __.._ uwur~ <br />CertiFieate of <br />Participation <br />General <br />Obligation Bond <br />Tax Increment <br />Bonds <br />Revenue Bonds <br />Asset-Backed <br />Revenue Bonds <br />Double-Barrel <br />Revenue Bonds <br />Short-Tenn <br />Municipal <br />NoteslBonds <br />Special <br />Assessment <br />Bonds <br />Direct Source <br />(Equipment) <br />Fnancing Loan <br />Ex rises the Asset %orf rm m ,,,.,,e ~..• <br />Requires pledging of -.,--.._._. ...._- --- <br />Spreads cost -_--- <br /> Potential rate impact, assets. Very dsfry. ct assets over <br /> but <br />Varies unless wnent rates Requires positive wnent users <br /> Usualy greater , <br />usualy large ran accommodate action of future Creates debt but and future Appropriate for easMpoor, <br />' <br />Yes t han t5 ars. assets. debt service. Commission. not bonded debt h <br />o~ <br />. <br />a e¢a <br />e <br />~ No <br /> S reeds cost <br />p r <br />o <br />l <br />wte <br />uires <br />Re <br />q PP <br /> of assets over Property-tax exempt <br /> wnent users entities donR contribute <br /> and future (.e. govemmant, <br />Yes, but ony <br />appropriate for More than ten <br />years No rate impact. Low interest rates and Contributes to users, but churches, hospitals) <br />d <br />long-lived , <br />preferebty Shows upon properly low risk No rate dsk. Bonded Debt exempts MWMC cannot propose er some <br />Un <br />t <br />assets. twen or more. No maximum tax bills. Election dsk. Bunten certain users. inde ndent ances. <br />circums <br /> Tax Increment Financing. <br />but usualy <br />Yes Risk is no increase fn requires ester approval in <br />, <br />IimNed to capital No rate impaeL property wlues, Springfield. Can be <br />benefiting a Usualy processed leadmg to no Cunent users <br />i administretivety complex, <br />customer Usualy ten tiD through properly tax increment for. Does not effect subsid <br />ze and may be affected by <br />subset iwe ars. No maximum bills. re errt. debt burden. future users. Measure 47!50 GmRs. No <br /> Less risky tl sewrel <br /> revenue streams are <br /> Potential rate impaeL pledged. Higher - Spreads cost <br />but ony <br />Yes More than tan Requires rates be interest rate than GO of assets over Requires ester approval <br />, <br />appropriate for years, Generely up to sufficient to provide bonds. Rates must Contributes to wnent users or process through the <br />brig-frved preferaby 5tNk of annual debt coverage ratio of rise to meet bond Bonded Debt and future URBA MWMC cannot <br />assets. lwe or more. ce ' I e rise 125% covenants. Burden users. ro se inde ride Yes <br /> Physical assets or <br /> revenue streams are Requires ester approval <br /> Potential rete impact, pledged. Usualy or process through the <br /> especially tl User Fee carry higher interest URBA MWMC cannot <br /> revenue stream is rates than standard propose mdependentty. <br /> pledged as wGaterel. revenue bonds. Spreads cast Usualy most appropriate <br /> Requires rates be Rates must rise to of assets over for smaller issues then <br /> sufficient to provide meet bond Contributes to wrreM users standard revenue bonds, <br /> Less than ten Less than SS debt coverage ratio of convenants or risk Bonded Dabt and future or for utllities with less <br />Yes. ars. million. 125% losin collateral. Burden users. severe financial footin No <br /> <br /> Several revenue <br /> streams are pledged, Requires ester approval. <br /> usually Grctud'mg MWMC cannot propose <br /> proPe~,taxes. independently. Usualy <br /> Potential rete impact Higher interest rete Spreads cast most appropriate for <br /> Requires rates be then GO bonds, but of assets over smaller issues than <br /> suffident to provide usualy lower than Contributes to wrreni users standard revenue bonds, <br /> Less than ten Less than SS debt eowrege retio of standard revenue Bondetl Dent and future or for utiltiies vdfh less <br />Yes. ears. million. 125% bonds. Burden users. severe financial footi No <br /> <br /> These Mols are bridge <br /> funding" to provide capital <br /> Can be used for untll tends are received <br /> short or long- <br />lived asset. Risk is dependent on from a preapproved <br /> Lifespan vvGl Potential rate impact, the sawrity of the bond, grant or tax source. <br /> <br />Yes, but usualy <br />dictate loan <br />Varies, based <br />unless wrrent rates <br />uHimafe Fnancng <br /> <br />b <br />t <br />d <br />bt General interfund <br />y <br />ff <br />bonowing is preferred <br />for short-term repayment on ultimate can accommodate source. Interest rates u <br />Creates <br />e <br />, , <br />b N <br />needs vehicle. financial tool. debt service. Nell reflect this. not bonded debt Does not a . le. <br />resources are avatla o <br /> Those who benefit most <br /> Maximum Can cause political directly, pay; however, <br /> dictated try problems, unless they sometimes pay more <br />but project <br />Yes - economic No rate impact. costs ctosety match Cunent users then they 6enefR More <br />, <br />benefits 6mNed eondifions and Shoves upon properly benefits and there is Does not effect subsidize appropriate for local than <br />' <br />eo re hic are a U to 15 ars ro'ect seo tax bills. ublic su ort debt burden. future users. eels. <br />re lone! Not usual . <br /> Varies by cost Potential rate impact, Good credit terms may <br /> of equipment, unless wrrent rates Cunent users make this attractive. One <br />UsuaGy but usualy can accommodate Requires pledging of Creates debt, but subsidize of many options to fund <br />' <br />e ui merit 1-5 ars modest debt service. asset financed not bonded debt future users. ment. <br />a u No <br />r. <br />r_ <br />i ''. <br />.', <br />2005 MWMC Financial Plan - Appendix II Page 41 <br />