Question

The sole purpose of economic development is adding to the tax base.

True

False

General Obligation Bonds pledge the revenues of a specific funding source to pay for debt service.

True

False

It is important to develop clear policies on economic development in order to direct staff and reduce politics in the economic development decision-making process.

True

False

Consumable items lasting less than a year usually make up a city's Capital Improvement Plan.

True

False

A municipal bond is an obligation to pay a stated amount of money at a fixed future date for the purpose of incurring debt.

True

False

It is illegal for a government agency to enter into an agreement with a private company to lease an asset and to appropriate General Fund monies to pay for the lease on an annual basis.

True

False

The credit rating for a municipal bond provides a measure of the degree of risk for the bond for investors.

True

False

Many issuers buy bond insurance to increase the marketability by protecting investors from default.

True

False

The three primary methods used to sell bonds are competitive, negotiated, and sole source.

True

False

Revenue bonds are used to pay for General Fund capital projects, so they are usually paid for by levying taxes to pay for the debt.

True

False

The Capital Budget must be approved by the governing body before it can take effect.

True

False

The scope of a Capital Improvement Plan can be affected by the definition of capital items.

True

False

Every capital budgeting process is about the same - it doesn't matter much who the participants are, the outcomes will be the same.

True

False

Answer 1

As per rules I will answer the first 4 sub parts of this question

1.False

The goal of economic development is to maximize the welfare of people. Adding to the tax base is a means to achieve the end.

2.False

General obligation bonds pledge the faith and credit and unlimited taxing power to pay for debt service. Revenue bonds are the ones that pledge revenues.

3.True

Unless there is clarity of policies to be followed by people, the objective of economic development cannot be achieved.

4.False

The capital improvement plan is made up of long term assets and cannot be made with consumables which would change frequently