Revenue bonds are typically repaid by which of the following?

Revenue bonds are a type of municipal bond specifically secured by the revenues generated from a particular project or source. This means that the repayment of these bonds comes directly from the income produced by that specific project, rather than from the taxes or general revenues of a municipality.

In the case of revenue bonds, one common source of repayment is user fees associated with public services. For instance, if a revenue bond is issued to fund the construction of a water treatment plant, the bonds would be repaid through the fees collected from water charges to the users of that facility. This ensures that the bondholders receive their interest and principal payments from the revenues generated by the project, thus making the financial arrangement sustainable based on the project's performance.

This mechanism creates a clear link between the success of the project and the ability to repay the bond, which is essential for investors to assess the risk and reliability of the investment. Understanding this concept is crucial for anyone involved in environmental health or municipal finance as it highlights how infrastructure projects are funded and maintained.