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Bonds



League City uses three types of bonds to finance projects:
  • Certificates of Obligation are used to finance projects.  The certificates are backed by the full faith and credit of the City through a pledge of property taxes.  Certificates of Obligation interest costs are similar to General Obligation bonds.  City Council authorizes or disapproves the request after posting proper public notice.  This includes hosting public hearings to allow for public input and ability for taxpayers to request the opportunity to petition for an election.  If no petition is received, Certificates of Obligation are then issued; however, if a petition of five percent of the voters is presented, the Certificates of Obligation may not be issued until an election is held.
  • General Obligation Bonds are used to finance library, park, public safety, street, and storm sewer projects.  The bonds are backed by the full faith and credit of the City through a pledge of property taxes.  General Obligation bonds are voted on by taxpayers and provide the City with the best interest rate. 
  • Water Utility Systems Revenue Bonds are used to finance water and wasterwater projects.  The bonds are backed by a pledge of net revenues of the City's water system.  Revenue bonds have a higher interest rate and require a reserve fund.