January 16, 2014

Voted General Obligation Bonds: A Guide for Washington Cities

General Obligation Bonds. Washington cities may issue general obligation bonds under state law, including:

• Councilmanic or limited tax general obligation bonds (“LTGO” bonds), issued within a city’s nonvoted debt capacity. LTGO bonds are paid from regular property taxes and other available city funds.
• Voter-approved unlimited tax general obligation bonds (“UTGO” bonds), issued within a city’s voted debt capacity. UTGO bonds are paid from voter-approved “excess levies”, outside the constitutional and statutory limitations that apply to regular property taxes.

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