A general obligation bond (GO) is a municipal bond backed by the credit and taxing power of the issuing jurisdiction. General obligation bonds are issued with the belief that a municipality will be able to repay its debt obligation through taxation. The state of Missouri permits a city, by a vote of two-thirds of the voting electorate, to incur GO indebtedness not to exceed 20% of the assessed valuation of taxable property. The total GO bond debt limit was $420 million as of January 1.
Revenue bonds are municipal bonds that finance income-producing projects and are secured by a specified revenue source. Typically revenue bonds can be issued by any government agency or fund that is managed in the manner of a business, such as entities having both operating revenues and expenses.