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Comprehensive Plan Capital Improvements Element • Borrowing As needed, the county uses borrowing as a financing vehicle to raise money for public purposes that are beyond the realm of current cash reserves, operating revenue and reasonable taxation. Currently, borrowing money to pay for capital improvements can be done through either short-term or long-term financing. Short term financing is usually accomplished by the use of bond pools, notes, private placements with banks, and the public placement of Voted General Obligation debt. Long term financing is usually achieved through the issuance of bonds sold on the public market. According to state law, local governments may sell bonds for capital improvements without a referendum of the voters if the pledge used for the bond is a non -ad valorem revenue source. Conversely, any bond issue pledging ad valorem taxes requires approval through a voter referendum. General Obligation Bonds are bonds that are secured by the full faith and credit of the issuing government. Those bonds are secured by a pledge of the issuer's ad valorem taxing power. According to state law, the amount of ad valorem taxes necessary to pay the debt service on general obligation bonds is not subject to the constitutional property tax millage limits. Such bonds constitute debts of the issuer and require approval through a voter referendum prior to issuance. Revenue bonds are bonds payable from a specific source of revenue, where the full faith and credit of the issuer is not pledged to repay the bonds. Because revenue bonds are payable from identified sources of revenue, bond holders may not compel taxation or legislative appropriation of funds for payment of debt service. Pledged revenues may be derived from operation of financed projects, grants, or other specified non -ad valorem taxes. A public referendum is not required prior to issuance or validation of such obligations. In the past, the county has issued revenue bonds to finance improvements to its sanitary sewer, potable water, and golf course facilities. Also, revenue bonds have been issued to finance the cost of construction of various capital improvement projects. Deposits from bond revenues are put into the respective bond fund accounts for those projects, whereby funds are specifically designated for a particular project, and user charges are used to pay off the debt. Special assessment bonds are bonds issued to pay for capital improvements that impact specific areas or groups of property owners. Proceeds from the assessments levied against benefiting property owners are used to pay off the bond debt. The issuance of those bonds does not need to be approved by voter referendum. Community Development Department Indian River County Adopted , 2013, Ordinance 2013- 11