Which bond detail is not required to be included in the bond ordinance?

The bond ordinance is a critical document that outlines the terms and conditions associated with the issuance of bonds by a municipality. Among various details that must be included, the principal amount, purpose of the bond, and interest rate are essential components because they inform potential investors about the specifics of what they are purchasing and under what conditions.

While a bond maturity schedule, which outlines when each installment of the principal and the interest will be paid, is certainly important for investors in assessing the timing and risk of their investment, it is not a mandatory detail that must be included in the bond ordinance itself. The focus of the bond ordinance is primarily on broader terms rather than specific payment schedules, which could be included in supplementary documentation or provided to bondholders separately. This emphasis on high-level details in the ordinance provides flexibility in how maturity schedules are presented or structured, allowing for adjustments based on market conditions or financing strategies.

Understanding this distinction is vital for municipal finance officers, as it affects how they draft and present bond ordinances and how they communicate effectively with bondholders and investors.