Similarly, private sector use of surety and performance bonds may enable a project to move forward. Privatization can result in lower construction, operations and maintenance costs, which may be translated into lower user fees, compared to the public alternative. Refinancing, while incurring new bond issuance fees and legal costs, can lower annual interest payments considerably. Such issues include the basic complexity or simplicity of the mechanism, demands on staff time to process paperwork, handle applications and red tape, and the flexibility provided in the administration and use of a financial tool. For the other sections, administrative ease also can refer to the users of the financial tool, for example, whether the tool is complicated to understand, whether using it is burdensome in terms of staff time and paperwork, whether expensive legal advice is required, whether voter approval must be sought.
Equity also is used in all ten sections, with varying nuances as described in the text.
Equity in some sections is used to compare the extent of direct public participation in the choice to use a given tool, or even how to structure the tool. For example, any bond or other local fund-raising device which requires local voter approval is described as highly equitable. Equity also is used extensively to compare the accessibility of the financial tool to small versus large potential users and to compare the costs of the tool for different clients or those who pay. Tools are most equitable if they reflect affordability concerns or special circumstances of the user, for example, in the case of fees and taxes adopting graduated or non-regressive rate structures. Taxes which are paid for by non-residents as well as residents, both of whom may benefit from an environmental improvement, also are highly equitable.