What bond type is often repaid from tax revenue benefiting the entire community?

The bond type that is frequently repaid from tax revenue benefiting the entire community is the Unlimited Tax General Obligation Bonds. These bonds are backed by the full taxing power of the issuing municipality, meaning that there is no limit to the amount of property tax that can be levied to repay the bonds. This characteristic allows these bonds to be perceived as a lower risk for investors since the government has the ability to raise taxes to ensure the debt is serviced.

Since the repayments on these bonds come from taxes that are available to the entire community, they are typically utilized to fund projects that benefit the public at large, such as school construction, infrastructure improvements, or the construction of public facilities. Because the obligation to repay the bonds is tied directly to the community's tax revenue rather than a specific revenue stream from a project, the entire community benefits from the improvements financed by these bonds.

In contrast, other options involve limitations either in the type of revenue backing the bonds or the scope of the community benefits. Revenue Bonds, for example, are repaid from specific project revenues, and Limited Tax General Obligation Bonds have constraints on the rate or amount of taxation that can be used for repayment. Joint Ventures/Privatization typically refer to partnerships between public and private