Understanding Financing Options Used for Public Infrastructure delivers an overview of tax-exempt bonds and other financing tools used by state and local governments.
“As our country’s infrastructure needs continue to grow, maintaining tax-exempt bonds is essential to making that happen,” the Government Finance Officers Association (GFOA) concludes.
As a member of the Public Finance Network, APWA has included this document here for members to understand and use at their discretion. Also, APWA is asking public works professionals to “Share Your Story” on GFOA’s “Built by Bonds” website.
Key points in GFOA’s report:
- Fundamentals of Tax-Exempt Bonds: State and local governments issue tax-exempt bonds to finance long-term capital projects and infrastructure. These bonds offer lower borrowing costs due to their tax-exempt status, making them a cost-effective means of funding public facilities.
- Role in Infrastructure Financing: Tax-exempt bonds are crucial for developing and maintaining public infrastructure, such as schools, roads, and utilities. They enable governments to undertake significant projects without immediate tax increases, spreading the cost over the asset’s useful life.
- Legislative Context: Over the past fifty years, various federal laws have influenced the tax-exempt bond market. Understanding this legislative history is essential for comprehending current financing structures and anticipating future changes.
