Which bonds are secured by legally available general fund revenues and do not pledge unlimited taxing power?

Limited Tax General Obligation Bonds are secured by legally available general fund revenues and do not carry the pledge of unlimited taxing power. These bonds are backed by specific tax revenues or a set limit on the tax rate rather than the broader taxing authority that an unlimited tax general obligation bond would have. This means that if the revenues are insufficient, the issuing authority is not compelled to raise taxes beyond the stipulated limit.

This characteristic makes limited tax general obligation bonds distinct in that they provide a measure of security for investors while also placing constraints on the issuing government’s ability to generate funds through taxation beyond what is legally allowed. It’s an important consideration for both governments and investors when assessing risk and determining how public projects or financial needs can be funded without overextending tax burdens on citizens.