Page 14 - Moreno Valley Citizen's Guide to the Budget

Non-Commitment Debt other related

Non-Commitment Debt (also known as Conduit Debt) is a financing issues

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.