General Obligation Bonds
A GO Bond is a common financing mechanism used to
fund the cost of new construction or improvement projects
that do not produce revenue. GO Bonds are repaid by an
ad valorem tax on property. There are two types of GO
Bond measures, both of which require voter approval.
These two types of measures are the traditional 2/3 voter
approval which can be used by most public agencies, and
55% voter approval (as approved through Prop. 39 in
November 2000) which can be used by school entities.
Bonds issued pursuant to the 2/3’s voter approval may
finance:
- Land acquisition
- Purchase or construction of new facilities
- Renovation and repair of existing buildings
Bonds issued pursuant to Prop. 39 approval may finance:
- All projects eligible for financing under 2/3’s voter
approval
- Furnishing and equipping of school facilities
- Lease of real property for school facilities
Capitol PFG advises public agencies on general obligation
bond elections and issuance of general obligation bonds.
We are particularly proud of our efforts in assisting the
Santee School District with the successful passage of a $60
million general obligation bond measure. The Santee
School District is located in a conservative area of San
Diego County and had not passed a bond measure in two
previous attempts. In 2006, we worked closely with the
District to develop a financial and facilities plan that gained
the support of the Santee Taxpayers Association, which
resulted in passing the bond measure. Bond proceeds will
be used to fund a substantial portion of the District’s
comprehensive new construction and modernization
program.
Capitol Public Finance Group, LLC
1900 Point West Way, Ste. 273
Sacramento, CA 95815
T (916) 641-2734
F (916) 921-2734 |
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