What is required before issuing tourism development bonds?

The issuance of tourism development bonds requires local government financing authorization (LGF authorization). This is a critical step because tourism development bonds are a type of financing specifically aimed at funding projects that are intended to promote tourism in a local area. Before such bonds can be issued, local governments must obtain the necessary authorization which outlines the specific conditions and purposes for which the funds raised through the bond issuance can be utilized.

LGF authorization ensures that any financing undertaken by a local government aligns with state laws and regulations related to debt issuance. It provides a framework to ensure that the local government is empowered to enter into such financial commitments while also protecting the interests of taxpayers and investors.

Additionally, while approvals from the city council and potentially state legislature may play a role in the broader context of funding approval and project endorsement, the essential requirement that specifically pertains to issuing tourism development bonds is the local government financing authorization. This step is crucial for the legality and approval of the bond issuance process.