Revenue Bonds Fund Construction

Go bonds give cities a tool to raise funds for capital improvement projects that are otherwise not funded by city revenue such as roads bridges bikeways and urban trails and parks.

Revenue bonds fund construction. Revenue bonds may be issued to construct or expand upon various revenue generating entities including. Hospital revenue bonds fund construction and renovation of hospitals and the buying of equipment. Municipalities use revenue bonds in order to fund the construction expansion or renovation of speculative projects that generate user fees such as airports industrial parks sports stadiums publicly owned power plants hospitals and toll roads. Toll roads and bridges see toll revenue bond airports seaports and other transportation hubs.

The bonds can also be used to purchase new equipment. As a result go bonds are typically used to fund capital improvement projects that will serve the community. New york september 11 2020 moody s investors service has reinstated the aa2 rating assigned to the new york city educational construction funds 131 million revenue bonds 2020 series a. Lease revenue bonds usually finance the construction of facilities including state office buildings correction facilities courthouses and state fire facilities.

In other words the money raised by the bond offering directly finances the project and the project once complete generates the revenues to pay back the interest and principal on the bonds to investors. Hospital revenues such as those from medicare are used to repay bondholders. Lease revenue bonds lrbs are a type of revenue bond. Water and wastewater sewer utilities.

A hospital revenue bond is a type of municipal bond intended to support the construction of new hospitals nursing homes or related facilities. These bonds normally do not require voter approval. Rather they are paid off from a designated revenue stream usually generated by the projects they finance such as bridge tolls parking garage fees or water contract payments. The sale originally scheduled for march 2020 was postponed by the issuer and ecf expects to execute the transaction within the next 90 days.

Power plants and electrical generation facilities.