What is typically completed prior to determining whether to issue a revenue bond?

A feasibility study is typically completed prior to determining whether to issue a revenue bond because it evaluates the viability of the proposed project or initiative for which the bond will be issued. This study assesses various factors such as projected revenues, costs, and the overall market conditions. The goal is to provide an in-depth analysis that can help stakeholders make informed decisions about the potential success and profitability of the project.

Conducting a feasibility study allows for a systematic evaluation of expected cash flows from the project, ensuring that there will be sufficient revenue to cover debt service obligations once the bond is issued. This process is critical in demonstrating the reliability of revenue generation and is often required by investors and regulatory bodies to gauge the project's potential risks and returns.

Other aspects like market analysis, financial audits, and risk assessments contribute valuable insights but usually come after the feasibility study. While they help support the conclusions drawn in the feasibility study, they do not replace the comprehensive evaluation of the project's feasibility itself.