Types of Debt Obligations
Bond Anticipation Notes
Bond anticipation notes are short-term debt obligations for a period of one year or less. The notes may be paid off at maturity but more commonly renewed or rolled over at the same or a reduced value upon maturity.
General Obligation Bonds
General obligation bonds are direct obligations of the City for which its full faith and credit are pledged for repayment. The general obligation or GO bonds will be retired from the general obligation debt service fund. The GO bonds are to be repaid from both voted and unvoted property tax levied on all taxable property located within the City, municipal income taxes, and transfers from the Water Revenue Fund for exempt properties.
Exempt properties include organizations exempt from taxation, such as colleges and churches, as well as property outside the City's jurisdiction who are provided water services from the City. The City assesses these exempt properties through a surcharge on their water bill to pay for the debt.
Urban Renewal Bonds
Urban renewal bonds are direct obligations of the City for which its full faith and credit are pledged for repayment. Urban renewal bonds are to be repaid from property taxes approved for that purpose, and will be retired from the general obligation debt service fund.
The City has several loans with various agencies. The Ohio Water Development Agency loans funds to municipalities for water and sewer related projects. The Ohio Public Worksd Commission offers zero percent loans for several City projects.
The City also entered into an agreement with the City of Olmsted Falls, Ohio for a joint construction project on Lindberg/Westlawn Road. The City has agreed to make annual debt service payments to the City of Olmsted Falls who were the lead City on the project.
The loans stated above will be repaid from user fees, voted property taxes and municipal income taxes.
The City is obligated under certain lease agreements. The leased assets and related obligations are long-term agreement leases.