Long‐Term Financing and Debt Administration: Planning and Marketing Bonds

Abstract

Many of the problems of long‐term financing are the same for all utilities, regardless of the utilities’ structure or location. Other problems are specific to particular locales. The joint discussion presented here, and originally given at the Southwest Sec. Meeting on Oct. 13, 1971, reviews the general and particular points of debt financing.The author of the first article explains that the problems of municipal financing today are more complicated than previously. However, there are organizations not previously available to which the utility manager can turn for help. And the utility manager can help his cause further by availing himself of staff advisers in the fields of law, engineering, and finance to meet the specific requirements of fiinancing and to coordinate all of the elements involved.The theme of the second article is that the utility that wants to raise monies for financing improvements through the issuance of bonds has two choices: general‐obligation bonds and revenue bonds. The process of financing via the latter offers the utility many procedural options. Which one is chosen depends upon the laws and their interpretation.