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Bernal Community Park Phases I, II, III and IV Open Space Community Center o~ recommending that the completed first). General Obligation Bonds Youth Center (Note: the Bernal Financing Committee is Youth Center have the highest priority of the facilities and be Since the passage of Proposition 46 on the June 3, 1986 ballot, cities have been able to issue general obligation bonds to acquire, construct, or improve real property. General obligation bond issues are the most efficient form of long-term debt financing because the issues require neither a reserve fund nor funded interest (i.e., capitalized interest) during construction or acquisition of the project financed with the proceeds of the bonds. Therefore, general obligation bond issues are smaller in size and annual total debt is correspondingly lower than that of any other form of long term debt financing. The major disadvantage of a General Obligation Bond is the required 2/3rds-majority voter approval and the inequities created by Proposition XIII in the assessed valuations amongst property owners/homeowners. Another issue one must consider when issuing general obligation bonds is the time necessary to educate the voters about the need for the financing program, to hold the election, and then to structure the issue and sell the bonds. An election for the issuance of general obligation bonds can only occur three times a year; the second Tuesday in April (even numbered years); first Tuesday after the first Monday in March (odd numbered years); the first Tuesday after the first Monday in June; and the first Tuesday after the first Monday in November. The State legislature elected to move the April election up to February in 2008. Therefore, the dates for a general obligation bond election in 2008 are February 5th, June 3`d, and November 4th.Also, it should be noted that there are long lead times for these elections. For example, the cutoff date for information to the Alameda County Registrar's Office for the February 5th, 2008 election is October 31, 2007. Finally it should be noted that these elections can be costly. Estimates can be as high as $150,000 depending on printing costs and if there are any other items on the ballot to share in the cost. Therefore, it is important that the ballot initiative is well planned, organized, supported by the community and therefore, successful at the polls. The issuance of general obligation bonds is the least expensive form of debt financing to fund the gap between the revenues available for the projects and the capital and operating and maintenance cost of the projects. The following table summarizes the findings: