Which action must be taken by a municipality if their debt obligations change?

When a municipality experiences changes in its debt obligations, it is essential for them to notify the Local Government Finance (LGF) authority about these changes. This action ensures that the LGF can monitor the financial health of the municipality, assess the impact of the debt changes on the municipality's overall fiscal situation, and possibly provide guidance or support if necessary.

This notification process is important for maintaining transparency with oversight entities, which helps in safeguarding the interests of taxpayers and ensuring compliance with applicable laws and regulations. By keeping the LGF informed, the municipality is engaging in responsible fiscal management and allowing for appropriate monitoring of its financial obligations.

The other actions, such as reissuing all existing bonds, revising tax codes, or conducting a community referendum, are not typically required as immediate responses to changes in debt. Reissuing bonds could be a complex process with its own set of regulations, and changes to tax codes or community referendums generally pertain to broader fiscal policy and decision-making rather than directly to changes in existing debt obligations.