General Obligation Bonds

The Plan anticipates $2.7 billion in General Obligation (G.O.) Bonds over the next 10 years. G.O. Bonds are  backed by the City’s property tax revenue and are repaid directly out of property taxes through a fund held by the Treasurer’s Office.

Table 1.5 shows the Capital Plan’s G.O. Bond Program for the next 10 years.

Chart 1.1 illustrates the relationship between the G.O. Bond Program and the local property tax rate, including existing and outstanding issuance and voter-approved Bonds. This view shows the City’s policy constraint that G.O. Bonds will not increase the property tax rate above 2006 levels.

All amounts attributed to future debt programs are estimates and may need to be adjusted.

Table 1.5

Chart 1.1

Certificates of Participation

The Plan anticipates $963 million in Certificates of Participation (COPs), also known as General Fund debt, over the next 10 years. COPs are backed by a physical asset in the City’s capital portfolio, and repayments are appropriated each year out of the General Fund.

Table 1.6 shows the Capital Plan’s COP Program for the next 10 years.

Chart 1.2 illustrates the COP program against the City’s policy constraint for General Fund debt not to exceed 3.25% of General Fund Discretionary Revenue.

All amounts attributed to future debt programs are estimates and may need to be adjusted.

Table 1.6

Chart 1.2