special assessment bond

Special assessment bond

A municipal bond with interest paid by the taxes of the community benefiting from the bond-funded project.

Special Assessment Bond

A municipal bond whose proceeds sponsor a certain, defined project. Property taxes paying for the bond are levied only on those directly benefiting from the project. For example, if a special assessment bond is issued to pay for road repairs on a certain street, only the houses and other buildings on that street will pay higher property taxes. Generally speaking, special assessment bonds are not backed by the full faith and credit of the municipality and as such carry more risk than most general obligation bonds. Special assessment bonds that do have full faith and credit are called "general obligation special assessment bonds."

special assessment bond

A municipal bond with debt service limited to revenues from assessments against those who directly benefit from the project the funds have been used to finance. This type of bond is more risky than a general obligation bond of the same issuer if it is not also secured by a full-faith-and-credit pledge.
References in periodicals archive ?
local governments have financed infrastructure through the use of general obligation bond proceeds, special assessment bond proceeds, intergovernmental revenues, and current revenues such as property taxes.
Like a special assessment bond, debt ratios will vary from parcel to parcel and credit quality improves as a district becomes developed.
Through this Request for Qualifications ( RFQ ) process, the City Attorney s Office of the City of San Jose (the City ) is seeking to establish a pool of qualified law firms to provide bond counsel and disclosure counsel services in connection with the issuance of various types of municipal bonds and other indebtedness, including without limitation, general obligation bonds, tax and revenue anticipation notes and/or bonds, lease revenue bonds, certificates of participation, commercial paper notes, special assessment bonds, multi-family housing bonds and community facility district (Mello-Roos) special tax bonds by or on behalf of the City.
A lawsuit filed by First Community Bank of Batesville makes no bones about his alleged mischief: "Kevin Lewis fraudulently drafted, sold and pledged the special assessment bonds.
Foote joins the Portland team as a specialist in municipal finance where she has worked on general obligation bonds, revenue bonds, special assessment bonds and certificates of participation for school districts, cities/towns, electrical districts, community facilities districts and fire districts.
615 million LTGO sanitary sewer special assessment bonds series 2001 at 'AA-';
This project is funded in part by special assessment bonds and will move forward in the Capital Improvement Program subject to property owner support.
Lewis borrowed $450,200 from First Community Bank in 2007 and as collateral used his interest in the special assessment bonds of Fieldstone Property Owners Improvement District No.
s building authority bonds (Recreation Facility) series 1998 and special assessment bonds (limited tax GO) series 1998, both issued for Canton Township.
85 million limited tax general obligation (LTGO) bonds series 2004 to 'B' from 'BB'; --$300,000 special assessment bonds, series 2007 to 'B' from 'BB'; --Implied unlimited tax general obligation (ULTGO) bonds to 'B+' from 'BB+'.
PASSAGE OF ADDITIONAL MILLAGE CRUCIAL TO OPERATIONS: The downgrades and Rating Watch Negative reflect Fitch's concerns that without the passage of an additional millage, debt service payments for the special assessment bonds will deplete available reserves and significantly increase the probability of a default.
1 million bonds expected to remain outstanding after the refunding from the original series 1987 special assessment bonds for the Downtown Improvement District are rated 'A+'.

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