What type of bonds are typically used to finance public capital facilities like schools and museums?

General Obligation Bonds are commonly used to finance public capital facilities such as schools and museums because they are backed by the full faith and credit of the issuing government. This means that the government can raise taxes to pay back the bondholders, making these bonds a relatively low-risk investment.

These bonds are typically approved by voter referendum, allowing the public to have a say in how their tax dollars are spent for community projects. The funds raised through General Obligation Bonds can be used for a wide range of capital needs, supporting the construction, renovation, or expansion of educational and cultural facilities that benefit the community as a whole.

In contrast, Revenue Bonds are secured by the revenues generated from specific projects (such as tolls or user fees), which may not guarantee funding for more generalized public facilities. Public Enterprise Revenue Bonds are even more specialized, typically connected to specific public services or enterprises. Special District Assessments can be used for financing improvements in designated areas but do not apply broadly to all municipal projects like schools or museums.