Essay Impact of the Bonds on Public Projects

Submitted By Nadeem-Member
Words: 2273
Pages: 10
Open Document
Impact of the Bonds on Public Projects

The first bond was issued in New York in 1982 then this trend took over lot of municipalities in America. A bond issue will have an impact on the size of municipality or national debt, but bond issues will also impact positively on the market and economy of a county. A bond has time values with interest known as coupons. What does the bond impact market on municipality?
The bond market is a financial market where participants can issue new debt, known as the primary market, or buy and sell debt securities, known as the secondary market, usually in the form of bonds (Wikipedia, 2013).
Bond is the environment in which “issuance and trading of debt securities occurs.”
i) The bond market primarily includes government-issued securities and corporate debt securities, and facilitates the transfer of capital from savers to the issuers or organizations requiring capital for government projects, business expansions and ongoing operations (investopedia, 2013) .

Bonds issuance would be useful to facilitate access to financing of public projects, where it is necessary for long term instrument. Public goods are used to finance through taxation. Public goods can be described as public infrastructure project, include economic statistics, law enforcement, national defense, parks, and other things for the use to benefit to common people. Bonds are issued by the United States Treasury to fund the operation of the U.S. government, known as U.S Treasury Bonds, and Investors believe there is no chance that the U.S government will default on interest and principal payments on the bonds it issues. Comparison of issuance bonds market to finance “public goods” project at Fairfax County, City of Fairfax and Town of Herndon. On November 6th, 2012 Fairfax County has voted about issuance bonds to finance Renovate three libraries and build another library, and it also expands and improves county parks, three fire stations and update 22 courtrooms.
It will construct a levee and pumping station to shield the Huntington area from flooding, and it is intended to promote the health, safety and welfare of local people who live and work in Fairfax County. Libraries Funds such as $25 million will be used to renovate three libraries like John Marshall. Currently, a library is located close to Reston Town Center and planned Reston Parkway Metro station because that area may be redeveloped into a more urban, mixed-use center, the library may be relocated. Ten million dollars will be spent on project such as site studies, design and construction of the new library. The public safety bond will raise sum of $55millions, including $35 million to replace three fire stations like Baileys Crossroads, Jefferson and Herndon such as and $20 million to remodel twenty two courtrooms in Judicial Center. A lot of the funding like $63 million will spend on County Park Authority for improvements to current facilities and for purchase of land. The rest of money will support the “Northern Virginia Regional Park Authority”. County Park Authority look after 23,194 acres of parkland and other 420 parks, and these parks provide services, such as camping, golf, ice skating and swimming to county residents.
For community parks, the passage of the bonds mean a wide array of park and recreational facilities, including the first phase of improvements at Monticello Park, Hartland Road Park and White Gardens and continued phased development at Laurel Hill Park and Patriot Park. Countywide improvements in park signage and funding of the Mastenbrook matching grant program are also included (connectionnewspaper.com).
Different with Fairfax County, in 1999 the state allocated to the city US$ 3.1 million in Northern Virginia Transportation Development (NVTD) bonds to fund the widening of Lee Highway (now Fairfax Boulevard) to six lanes from chain bridge road (route 123) to the west city limits (WCL). The
Show More

Related Documents: Essay Impact of the Bonds on Public Projects

Essay on Legalization of MJ

NACo Policy research paper SERIES • ISSUE 1 • 2013 Municipal Bonds Build America A County Perspective on Changing the Tax-Exempt Status of Municipal Bond Interest Emilia Istrate NACo Director of Research Acknowledgments The author wants to thank the 45 counties that provided data on their 2012 interest payments on tax-exempt municipal bonds. I am also indebted to Dustin McDonald and the Government Financial Officers Association for all the help provided in collecting county interest…

Words 9965 - Pages 40

Case 15 - Emily G. Johnston Essay examples

are the income tax consequences of South Carolina's offer to BMW? What are the advantages of South Carolina's offer from the perspective of New Jersey? What form should New Jersey's subsidies take so that they can minimize the negative income tax impact on the recipients? Facts The purpose of this letter is to confirm with you (Mr. Glynn) our yesterday phone conversation. In which, I asked you for assistance in regards to a formulating a reinvigorated industry search program in the State of New…

Words 1655 - Pages 7

Municipal Funding of Stadium Construction Essay

Sports stadiums are expensive projects to undertake, and municipalities now bear much of the cost of financing them. Though there are serious economic costs to building these stadiums, there are quality-of-life benefits that accompany these costs. These benefits come through a sense of ownership in the local team, improved socialization opportunities, and increased civic pride. When quantified, this quality-of-life benefit equals the costs of construction, and using public financing to construct new…

Words 3601 - Pages 15

Committee Head Descriptions 1 Essays

regarding the responsibilities of each committee. Brotherhood The Brotherhood Committee Head oversees the planning and execution of events for the members of the colony in order to build bonds of brotherhood. Some of the committee's initiatives include: - Provide events for brothers that help them establish bonds with each other. - Provide programming to discourage cliques and division within the fraternity. - Look for brotherhood opportunities with other fraternities on campus. - Build relationships…

Words 1353 - Pages 6

AJS522Week5FinancialContingencyPlanningSourcesofFundingPaper 1

potential hazardous impact of a dangerous issue from occurring. To prevent unexpected hazards or situations that might jeopardize the intent and goals of the substance addiction therapy facility an emergency preparedness plan is a must. Public-Private Partners To make an addiction therapy facility one that is successful, it not only takes hard work and continuous dedication but it also requires the supply of income to be accessible. One source of income supply comes from the public and private associates…

Words 1814 - Pages 8

Student: Net Present Value and Cash Dividend Payments Essay

The conflicts of interest between managers and shareholders: the managers would tend to decrease the riskiness of firms’ operations to maintain the stability of their jobs, while shareholders would like to see the firm take on riskier projects to maximize their expected returns. The board of directors is a mechanism to protect the interest of the shareholders against the managers who may otherwise seek private benefits in running the corporation. If the CEO (the management) at the same time serves…

Words 1562 - Pages 7

Essay on the chilean empire

THE BOND MARKET Bond – a fixed (nominal) income asset which has a: -face value (stated value of the bond) - coupon interest rate (stated interest rate) - maturity date (length of time for fixed income payments) Bonds are debt issued by either corporations, governments, or other entities,. They are obligated to pay the interest periodically until maturity date plus the value of the bond at the time it matures. Ex: $1,000 bond, coupon rate of 5%, maturity of 5 years - the fixed income from…

Words 3113 - Pages 13

Essay about Final Notes

Final Notes: Areas to Concentrate: Purpose of governmental financial statements: Governmental financial reporting focuses on stewardship and accountability for how public resources are raised and used to provide services. Modified accrual vs. accrual basis of accounting: Full accrual is when revenues recognized when earned; expenses recognized when incurred. Modified accrual is when revenues recognized when available and measureable; expenditures when incurred. Current vs economic financial…

Words 2417 - Pages 10

National Debt Essay

as government or public debt refers to the amount that the United States government owes (United States Treasury n.p). The measure is usually in terms of securities by the treasury that are outstanding. It is also referred to as the public debt. It increases due to spending by the government and can be reduced by taxation and receipts. Treasury bills and bonds are used by the government as a way of managing the monetary operations and are not redeemable on a daily basis. The public debt increases as…

Words 1074 - Pages 5

Accounting Essay

Financial Portfolio for Bosch A Project in Partial Fulfillment Of the Requirements for ECBA: Business Finance for Managers Instructor – Dianne Dinkel May 11, 2014 This paper will provide a general company description and summarize a financial analysis of The Bosch Group. This paper will specifically analyze three years of financial statements, and discuss compound interest, Bonds and rate of return, Capital budgeting and dividend policies…

Words 4941 - Pages 20