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� <br />��� � ����� �+����� <br />� <br />� <br />Preserves current capital dollars <br />Allows debt to be repaid over time by the users af the project <br />This option carries the least nsk of all the development tools because conduit debt <br />� does not affect the City's credit rating and the repayment is secured only from the <br />debtor's pledged revenue streams. There is neither ad valorem taxation nor other <br />City revenue streams pledged. The City is simply lending its issuance authority to <br />� allow the borrower a lower interest rate. In addition, there is often a fee charged <br />by a City for this service. <br />� <br />� <br />� <br />7. Utility Financing <br />Utilities for new developments or redevelopments are negotiated as part of the <br />developer agreement. Utilities may be: <br />. installed by the developer and recovered from the buyer through the <br />selling pnce. <br />• installed by the City and recovered from assessments or payments <br />upon sale of the land by the developer <br />. installed by the city and paid through utilities fees from all users <br />� A city is authorized to issue revenue bonds with or without a general obligation <br />pledge. <br />These bonds are at risk if the utility infrastructure is created before such time as <br />_� the development is far enough along to assure that it will occur. New <br />infrastructure debt repayment may rely in part on additional revenues from the <br />new development as well as direct payments from the developer. Should the <br />.� development not occur, the other users may pay increased fees to make up any <br />�1 required shortfall. <br />� <br />� <br />� <br />8. Special Assessment Bonds <br />Roads, streets, and other improvements may be financed by the city with bonds or <br />cash on hand and reimbursed by the property owner over time. The <br />reimbursementsare assessed and included on the semi-annual tax bill. Interest is <br />charged based on bond interest rates plus a fee for administration. Bonds are <br />sold at tax-exempt rates so the developer is given a lower interest rate than they <br />could obtain in the pnvate market. <br />Special assessment bonds may be sold, pledging the assessment revenue stream <br />to repay the bonds. Other revenues as well as property taxes may be pledged as <br />long as assessments repay at least 20% of the total debt service. <br />This risk is similar to a GO revenue bond; however, assessments are a lien on the <br />� property, essentially eliminating the possibility of non-collection. These bonds <br />provide some cash flow risk, but can generally be viewed as a secure revenue <br />stream. <br />� <br />. SPRINGSTED Page 18 <br />