Local governments finance capital projects through debt, and the structure determines who repays it and what approvals are needed.

General obligation bonds are secured by the full faith and credit of the issuer and, where unlimited, by an unlimited tax pledge. Voter approval is generally required for unlimited tax obligations. Limited tax obligations are payable from existing taxing authority and typically need no vote, subject to statutory debt limits.

Revenue bonds are payable solely from the revenues of the financed system — water, sewer, parking. No tax pledge, no vote in most cases, and covenants requiring rates sufficient to cover debt service by a stated coverage ratio.

Special assessment bonds are repaid from assessments on benefited property.

Tax increment financing captures the increase in property tax revenue within a district to fund improvements, through an authority with its own governance and plan requirements.

Process. Authorizing resolution, publication and referendum periods during which electors may petition for a vote, official statement disclosure, continuing disclosure undertakings, and tax opinions for tax-exempt issues.

Securities law applies. Official statements are subject to antifraud provisions, and enforcement against issuers for misleading disclosure — particularly about pension liabilities — is an established feature of the market.