Revenue bonds used for municipal capital improvement projects are typically paid by whom?

Revenue bonds are designed to be repaid from the income generated by specific projects or services that those bonds finance. In the context of municipal capital improvement projects, this typically means that the individuals or businesses directly benefiting from the services funded by the bond—such as water utility services, parking facilities, or public transportation—are the ones responsible for paying back the bond through fees or charges associated with those services.

This creates a direct link between the use of the service and the repayment of the bond, ensuring that those who benefit from the improvements contribute to their funding. This model also reflects a principle of user-pay, where the costs of public infrastructure are borne by those who utilize it rather than the general taxpayer, thus aligning the financial burden with the users of the service.