Page 14 - Moreno Valley City Manager's Report for 2021
P. 14
OTHER RELATED
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Non-Commitment Debt
Non-Commitment Debt (also known as Conduit Debt) is a financing
tool utilized by private companies, non-profit organizations and public
authorities that funds projects through the issuance of tax-exempt
debt. Conduit financing generally supports capital improvements that
provide public benefit. The debt is the responsibility of the property
owner or project developer and the City has no liability for repayment
of the bonds. The City acts as an agent for the property owners in
collecting the special tax assessments and forwarding the collections
to bondholders.
