1) If the project comes in under budget, is the bond refundable to the tax payers, or can a payment be made toward the principal without penalty?
RESPONSE: Excess proceeds can be used to pay bonds debt service only, you can not prepay bonds. Normally issuers excess to pay debt service and the tax levy to aside for I & S fund balance. i.e. sounds like excess funds / surplus will reduce tax burden and be restricted to repay LIV debt only. Surplus will be invested in an interest bearing account in the interim.
2) Are the LIV tax bonds callable at any point?
RESPONSE: Yes. LMWD LIV Bonds will have a 10 year call.