City of Forney and Early Debt Retirement
Last month, you may have noticed information from the City of Forney touting the early payoff of bonds from the 2008 TxDOT Passthrough Toll Project. Many of us skim tidbits of this type of news but have littleto-no interest in the depth of the information presented because we are unsure of how it directly affects our daily lives. So why exactly should the early payoff of bonds matter to you, the taxpayer? Here is a quick refresher (or perhaps, introductory) course on bonds, this particular pay-off, and what it means for taxpayers:
What is a bond?
A bond, or in this case a general obligation bond, is a form of financing approved only by a vote of the citizens that is available to entities such as cities or school districts for the purpose of funding large improvement projects. Funds borrowed through bonds are generally repaid via a slight increase in the tax rate for a specified period of time.
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