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The District also may participate in economic development projects through the
issuance of revenue bonds secured, in whole or in part, by the pledge of
dedicated taxes and fees, such as payments-in-lieu of taxes, tax increments, and
special taxes. Governmental Revenue Bond issues have been used extensively by
states and municipalities throughout the nation to finance redevelopment of
depressed areas without increasing the general public debt.
One of the principal techniques employed by governments to
achieve their economic development objectives is the establishment of a public
instrumentality, empowered to issue special obligation revenue bonds that are
repayable solely from a special fund dedicated to that purpose. Because an
authority's bonds and other debts are deemed separate from those of the
government, the general public treasury is not liable for repayment of the
obligations. Tax increment financing (TIF) is a variation on this general theme. |
