Revenue bonds are typically paid for by which of the following?

Revenue bonds are specifically designed to be repaid from the income generated by the assets or services they finance. This means that the funds used to pay back the debt come from the revenues produced by the project itself, such as tolls from a toll road or fees from a public utility service. Therefore, the individuals or entities that benefit from or utilize these services are responsible for the repayment through the fees they pay.

For instance, if a municipality issues revenue bonds to expand its water supply system, the repayment would come from the water fees charged to residents and businesses using the system. This self-sustaining revenue model is a key characteristic of revenue bonds, distinguishing them from general obligation bonds, which are funded by taxes levied on all residents of a community. The focus on payment from users emphasizes the direct correlation between service consumption and funding, making it clear that those who receive the service are the ones providing the financial support for the bonds.