Kansas City 'No Cost To Taxpayer' Scam Explained

Expert analysis and something to remember whenever local developers start making big promises . . . 

So-called “no-taxpayer” bonds — frequently labeled revenue bonds, moral-obligation bonds or appropriation-backed debt — are designed to avoid a formal pledge of public repayment. Investors are told they are relying only on project revenues, not on a government’s full faith and credit.

But when projects falter, the distinction between legal obligation and political reality can narrow quickly.

Read more via www.TonysKansasCity.com link . . .

When 'no cost to taxpayers' isn't the whole story * Missouri Independent

Governors and mayors are embracing a familiar pitch: high-profile development projects financed with bonds that supposedly come at "no cost to taxpayers."