Which bonds are specifically backed by revenue generated from the customers who use the funded services?

Revenue bonds are specifically designed to be backed by the revenue generated from the services provided to users. This means that the funds collected from customers, such as fees for water, sewage, or transportation services, are used to repay the bondholders. The key characteristic of revenue bonds is that they do not rely on taxation for repayment; instead, their security and attractiveness to investors stem from the revenue streams generated by the specific projects they finance.

In contrast, general obligation bonds are backed by the full faith and credit of the issuing government, funded primarily through tax revenues. Tax-increment financing is a method used to finance public infrastructure improvements using the expected increase in property taxes that result from those improvements, rather than direct user revenues. Development impact fees are one-time charges assessed on new development projects to fund infrastructure improvements, but they are not bonds per se and do not involve the issuance of debt that is repaid through user-generated revenue.