What is a characteristic of revenue bonds in relation to airport funding?

Revenue bonds are a significant financing tool for airports, and their unique characteristic is that they primarily depend on the airport's financial viability and the revenue generated from its operations. This can include income from user fees, landing fees, concessions, and other operational revenues rather than traditional tax sources or voter approvals.

The financial viability of the airport is crucial here because the repayment of revenue bonds comes from the income generated by the airport rather than general taxation or public funding. Therefore, if the airport is prospering and generating sufficient revenue, it can service the debt associated with the bonds. This characteristic differentiates revenue bonds from other types of bonds, such as general obligation bonds, which may rely on taxpayer support or require voter backing for issuance.

Other options highlight aspects unrelated to how revenue bonds function. For example, some funding sources may depend on ticket sales, local taxes, or voter approval, but these are not inherent characteristics of revenue bonds. Their design is intended to allow airports to finance projects based on their operating income, which enables them to maintain a level of autonomy and operational independence in managing their finances.