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Refunding bonds are bonds issued to refinance (refund) previously issued outstanding debt.The City may issue refunding bonds to refinance the principal of and interest on outstanding bonds or other debt to achieve debt service savings, restructure scheduled debt service,convert from or to a variable or fixed interest rate,change or modify the source(s)of payment and security for the refunded debt,or modify covenants otherwise binding upon the City. Refunding bonds may be issued either on a current or advance basis. Revenue Bonds: Revenue Bonds are generally issued by enterprise funds that are financially self-sustaining without the use of taxes and therefore rely on the revenues collected by the enterprise fund to repay the debt. Fixed vs. Variable Rate Debt: forecasted r- ski .. •. . . Z ; •. • •• . . . . : .. . . . _ Nik220 .•t1 3•tS•tV.:i::.ala. Assessment Bonds: The Improvement Bond Act of 1915 (Streets and Highways Code Section 8500 et sea. allows the City to issue bonds to finance the"specific benefit" improvements on the real .rone within its jurisdiction provided by the City. Installments are collected by posting to the secure property tax roll of the county. -Mello Roos Bonds: Mello-Roos districts may issue municipal bonds to help finance development projects. If voters in the area have elected to become a Mello-Roos district,they are responsible for the repayment of these bonds through a special tax, assessed annually based on the value of the properties within the district. Mello-Roos financed developments might include schools, roads, libraries, police and fire protection stations. This type of financing is named after Henry Mello and Mike Roos of the California legislature, who sponsored legislation in 1982 to authorize this form of financing. General Obligation(GO) Bonds: In California, GO Bonds require a supermajority voter approval. Most GO bonds are backed by the issuer's ability to level ad valorem tax in amounts sufficient to meet debt service requirements. Certificate of Participation and Lease Revenue Bonds: Also known as `COP',this security that represents a share of an issuer's lease payment. When a i fin, es a . elk facili thr. • . le. -- . h._ - r. actin the int- - in that ' ' lease payment often is assigned to a third party that issues certificates of participation. The certificates represent a share of the lease payment to be received by the investor.