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not necessary for an entity to actually use that source of funds to repay the bonds if there <br />is another source available. This is the case for the City and the library bonds - the <br />City's General Fund has been pledged to repay the bonds, but since there have been <br />urban renewal funds available to pay the debt service, the General Fund has not been <br />needed to make payments. Although investors care a great deal about the revenue source <br />pledged to repay the bonds, once the bonds are issued, they are indifferent to the actual <br />revenue used to repay the bonds, as long as they get paid. Therefore, if the City Council <br />pledged a new source of revenue to repay bonds, it might be possible for a future City <br />Council to determine that an alternate revenue source should be used to repay the bonds <br />instead, and use the original revenue source for something other than originally intended. <br /> <br />Given these constraints on the use of revenue bonds, staff does not believe that the use of <br />revenue bonds would be financially prudent, nor would it achieve the goals stated for the <br />use of bonds. <br /> <br /> <br />