What is typically completed before deciding to issue a revenue bond?

A feasibility study is typically completed before deciding to issue a revenue bond because it assesses the project’s viability and financial soundness. This study analyzes factors such as market demand, cost estimates, potential revenue streams, operational considerations, and regulatory requirements. By evaluating these elements, stakeholders can determine whether the project is likely to generate sufficient revenue to meet bond obligations. This informed analysis is crucial, as revenue bonds are specifically backed by the income generated from the financed project, making it essential to ensure that there is a sustainable revenue source before proceeding with issuance.

In contrast, while other documents like a registration statement or a prospectus play important roles later in the bonding process, they rely on the foundational insights provided by the feasibility study. Referendum certification, on the other hand, is more commonly associated with general obligation bonds and public project approvals rather than the specific revenue bonds that depend on project revenues.