Issuance of a short-term bond anticipation note-to provide temporary financing for a general government capital project-that does not meet the requirements for treatment as long-term debt:

Question

Quizplus · Accepted Answer

Issuance of a short-term bond anticipation note does not increase the fund balance of the Capital Projects Fund (CPF) because they are not considered long-term debt. The note will be repaid using the proceeds of the long-term debt when issued, and the CPF will not have an increase in fund balance from the issuance of the note. It does not affect the General Long-Term Liabilities (GLTL) balance as it is not considered as long-term debt. It would not normally be repaid from a Debt Service Fund (DSF) as it is not long-term debt.

Issuance of a Short-Term Bond Anticipation Note-To Provide Temporary Financing