LafayetteIT
join:2004-06-02
Lafayette, LA
| reply to woody7
Re: Hmmmm.....
How many times must it be said that the funds for this project and not generated at all by the tax payers but by revenue bonds.
A municipal or revenue bond is supported by the revenue from a specific project, such as a toll bridge, highway, or local stadium.
This differs from general-obligation bonds, which can be repaid through a variety of tax sources. Revenue bonds are only payable from specified revenues.
Meaning that no matter what the only funds that can be used to pay off the bond is revenue from the project that is spawned by the bond. There is no obligation for the City of Lafayette to have to repay the debt with other funds if the project happens to fail. |
