The Public Purse offers you serious thinking about economic, financial and political trends at the U.S. state and local level with a focus on municipal credit risk
TAG | special district
2
Xenia Defaults, the USDA, Bond Insurance and Novation
3 Comments | Posted by Natalie Cohen in bankruptcy and default, bond insurance, municipal bonds
Add Xenia Rural Water District’s to the short but growing list of over-leveraged municipal borrowers. With $143 million in debt and about 9,000 customers, the unfolding socio-gram includes bondholders, bond insurers CIFG and Assured Guaranty, the US Department of Agriculture, Bank of America, and last, but not least, the ratepayers. A $5.2 million note to [...]
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California Mello-Roos Bond Defaults Likely to Increase
0 Comments | Posted by Natalie Cohen in bankruptcy and default
In a recent report about Mello-Roos Community Facility Districts (CFD’s) the California Debt and Investment Advisory Commission (CDIAC) stated:
Despite the potential impacts of evolving mortgage conditions, CFD’s have not reported higher default rates, at least through 2007-2008, but have reported a recent rise in the number of their draws on reserves.
(Mello-Roos bonds are post-proposition 13 [...]
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Sales taxes, shopping malls and municipal bonds
2 Comments | Posted by Natalie Cohen in municipal bonds
It’s not news that consumer spending is off, but in municipal bond country this also means sales taxes are coming in lower. Some communities, such as those that depend on major shopping malls may see a double whammy from their major taxpayer, who will be looking to lower their assessed valuation (or worst case, miss [...]
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The Municipal Bond Default Story, Part II
0 Comments | Posted by Natalie Cohen in bankruptcy and default, municipal bonds
Municipal bond defaults over the last two years occur in sectors that tie into the financial crisis: real estate. Multi-family housing and land development projects that never took off are at the front line. Special entities – usually a district of some kind, depending on the state – sell tax-exempt bonds to finance infrastructure for [...]
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Download Report: Avery Ranch Road District No.1, Texas
0 Comments | Posted by Natalie Cohen in reports
Insured 2007 bonds were sold to finance road construction for the Avery Ranch master planned community north of Austin, Texas. Download the report.
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Download report: Bend Metro Park and Recreation District, Oregon
0 Comments | Posted by Natalie Cohen in reports
A sample report on this district’s fiscal condition, 2005 bonds insured by AMBAC, no underlying rating, is available for your review.