About
General Obligations Bonds can be used to fund projects that will serve the community because the payoff is backed by the whole vested taxing authority of the municipality, no specific project identified as the source of funds to repay the bond obligation.
In Missouri, general obligation bonds cannot exceed 10% of the assessed valuation of the taxable tangible property in the municipality, and require voter approval by a two-thirds or four-sevenths majority, depending on when the elections are held.
General obligation bonds can help distribute infrastructure costs over the life of the asset. Flood risk reduction, and healthy watershed projects provide economic, environmental and quality of life protection for entire community and may provide a good source of project funds.
Consult your municipal attorney prior to moving forward with bond opportunities.
Project Examples
In May of 2019, Lincoln, NE voters approved a $9.9M stormwater bond. Projects the bond covers include stream stabilization, storm sewer repairs and additions, and urban drainage projects. The majority of the bond, $6.6M, will help remove 480 homes and businesses from the Deadman鈥檚 Run floodplain. Projected flood insurance saves are $450-$2,400/property owner, and costs property owners $6 annually.