Oklahoma is the only state where municipalities rely primarily on sales tax collections to fund city government operations. Because of falling sales tax revenues, we need to look at other funding options such as general obligation (GO) bonds.
To fund large, public projects over multiple years, municipalities often ask residents to pass GO bonds.
GO bonds are repaid over 20 years, though some may have terms of 5, 7 or 10 years.
GO bonds are repaid through property taxes (also called an ad valorem tax).
Note: GO bonds should not be confused with tax increment financing (TIF). This is a public financing method that is used as a subsidy for redevelopment, infrastructure and other community-improvement projects.