Debt Products Essentials 

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Municipalities have numerous ways to raise capital to fund projects and initiatives.  Various tax-exempt and taxable bond instruments, as well as bank loans can be utilized.  Determining which may be best for your entity depends on multiple factors, including the specific project being funded, the municipality's creditworthiness, funding sources, and state or local laws.  

This session explores GFOA’s Best Practices and Resources of some of the common municipal debt instruments available, including the pros, cons, and ideal use cases for each debt product. Participants will learn the difference between tax-exempt and taxable debt and gain a working knowledge of General Obligation Bonds, Revenue Bonds, Certificates of Participation, Variable Rate Debt, Bank Loans, and Private Placements.  

The course emphasizes how these financings are selected, structured, and deployed based on a municipality’s financial strategy and legal framework. Attendees will leave equipped to evaluate debt products depending on the context of the financing need, municipality's priorities, and legal requirements. 

Learning Objectives

  • Understand differences between tax-exempt and taxable debt and the situations when one is more appropriate. 

  • Learn the different types of debt instruments available and the differences between them, including differences in appropriate use and pricing. 

  • Understand how legal requirements can affect the type of debt a municipality can issue. 

  • Be aware of questions to raise internally and with external partners about the financings that are best for your entity.