General Obligation bonds (GOs) are generally voter approved and backed by the full faith and credit of the City (property tax pledge) and must be approved at an election. Voter approval may be granted during one of two general election dates each year.
Certificates of Obligation (COs) do not require voter approval and are backed by the full faith and credit of the City (property tax pledge). They can have a dual pledge of property taxes and a specific City revenue source as well, depending on the projects that will be funded by the COs. Some examples of pledged City revenues are water, wastewater, drainage and street maintenance revenues. House Bill 1869 from the 2021 Texas Legislature limits the use of COs to specific purposes, including self-supporting debt, designated infrastructure, vehicles, existing facility renovations, public safety, and utility system improvements.