Debt Obligations

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 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 $362 million as of January 1st.

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.

Image of the general obligation bond repayment plan. If you would like more details about the information contained in this image, please call ITS at 816-969-1234.