Consider current and new borrowing options
Cities can issue refunding bonds in order to reduce or restructure their debt service but must take into account the need for cash on hand, prevailing interest rates, and their authority to refund the bonds. These options should be used only where there is a prudent and responsible plan in place to repay any new borrowing.
Some questions to guide your thinking
- Does the city have the authority to issue refunding bonds?
- Which bonds can be refunded?
- What refunding method will be used: advanced or current?
- What savings will the city accrue from refunding or restructuring debt?
Issuing bonds responsibly
Government Finance Officers Association (GFOA) 30 minutes
Which stakeholders are involved in issuing bonds? What legal and structuring considerations should local governments keep in mind? This report provides a basic understanding on issuing bonds as well as an overview of alternative financing products.
Tapping into extended borrowing options (if possible)
Route Fifty (Government Executive Media Group) 5 minutes
Does your state have expanded borrowing options for pandemic relief? New Jersey lawmakers approved legislation that allowed county and municipal governments to issue "coronavirus relief bonds" to be paid back over ten years.