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 ?
The proceeds of the Loan will be used, along with other available money, to refund the Citys outstanding Special Assessment Bond, Series 2009A (Water Improvements USA 31) for debt service savings.
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.
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.
The report, among other things, presented four financing options--GO bonds, special tax bonds, special assessment bonds, and a community facilities district--that the City may use to meet its unfunded infrastructure and services needs.
615 million LTGO sanitary sewer special assessment bonds series 2001 at 'AA-';
Tenders are invited for bond counsel services for special assessment bonds and programs.
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.
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+'.
The City of Cocoa is requesting proposals from investment banking firms interested in providing underwriting services to the City, with the issuance of Capital Improvement Refunding Revenue Bonds, Series 2016 and Fire Special Assessment Bonds, Series 2016; for the purpose of refunding existing bonds and construction, reconstruction, and acquisition of facilities and equipment.
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.
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.

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