What type of bond can LADWP issue to finance infrastructure projects?

LADWP can issue revenue bonds to finance infrastructure projects as these are specifically designed for funding projects that generate revenue. Revenue bonds are secured by the income generated from the specific projects they fund, such as water, power, or other utility services. This means that the repayment of the bond depends on the revenue produced by these services, rather than the taxing power of the utility.

In contrast, general obligation bonds are typically backed by the full faith and credit of the issuing government entity and funded by tax revenues, which is not the typical approach for utility projects like those by LADWP. Municipal bonds encompass a broad category that includes various types of debt securities issued by municipalities; while LADWP can issue municipal bonds, revenue bonds are a more specific and commonly used tool for funding infrastructure projects directly tied to income-generating utilities. Commercial paper is a short-term debt instrument that utilities may use for quick financing needs but is not generally utilized for long-term infrastructure projects.