Funding bonds are issued primarily for what purpose?

Funding bonds are primarily issued to fund new public projects. These bonds provide municipalities with the necessary financing to invest in infrastructure and services that benefit the community, such as roads, schools, parks, and transportation systems. By issuing funding bonds, municipalities can raise large amounts of capital needed to undertake significant projects, which might be difficult to accomplish through smaller funding sources or annual budgets.

The utilization of funding bonds enables local governments to spread the cost of these projects over time, allowing for manageable repayment schedules through future revenues or tax collections. This approach supports the community's growth and ensures that public services and infrastructure can meet the current and future needs of residents.

While the other options describe potential uses of funds or financial strategies, they do not capture the primary purpose of funding bonds, which is to support new public projects that promote community development and economic growth.