What is synthetic project development financing?
A synthetic project development financing occurs when a local government determines that the projected increment revenue from new development in the unit justifies issuing debt to fund a public investment project in the unit. The unit does not issue project development bonds, however. It uses another form of financing, usually an installment-purchase financing—whereby the unit pledges the financed asset as security for the loan—to fund the public improvement.
Public Officials - Local and State Government Roles