Bonds encourage investment in the City. The City hires bond analysts who determine the value of the bonds that we can sell within a safe margin. We will issue bonds valued up to a certain amount, as approved by voters, and those bonds will be purchased by investors. The analysts will monitor the market and conduct the sale of the bonds.
The investors who purchase the bonds earn tax-free interest on their investment. Each year, we pay the principal and the interest on the bond debt, and that interest goes to the investors. When we retire the bonds, we pay the investors back the face value of the bond.