Certificates of Obligation (COs) are authorized by the Certificate of Obligation Act of 1971,
Subchapter C of Chapter 271 of the Texas Local Government Code. COs are generally issued as tax-supported debt to pay for the construction of a public work; purchase of materials, supplies,
equipment, machinery, buildings, land, and rights-of-way; and professional services, such as engineers,
architects, attorneys, and financial advisors. Debt for COs is paid from ad valorem taxes and/or a
combination of revenues available from other sources. CO issuance does not require voter approval
unless a valid petition of 5 percent of the voters requesting an election is presented.
General Obligation Bonds (G.O. Bonds) are secured by the County’s ad valorem taxes. Victoria County issues G.O. Bonds after the approval of the voters at a bond election.
Refunding Bonds can be issued by the County, under Chapter 1207, Texas Government Code, to refinance outstanding bonds by issuing new bonds at a lower interest rate. Refunding bonds do not require an election.
Lease-Purchase involve the purchase of an asset through periodic lease payments.