One method of financing for a municipal capital improvement is by revenue bonds, which in turn are paid by ____________.

Revenue bonds are a specific type of bond issued by municipalities to fund capital improvements, such as infrastructure projects. The key feature of revenue bonds is that they are backed by the revenue generated from the specific projects they finance, rather than by general taxes or government funding.

In this context, the most accurate completion of the statement is that revenue bonds are paid for by persons receiving the service related to the capital improvement. For instance, if a city builds a new water treatment plant funded by revenue bonds, the repayment of those bonds comes from the fees paid by residents who use the water service. This directly ties the repayment of the bond to the users of the service, creating a system where those benefiting from the infrastructure are the ones responsible for repaying the investment.

This method of financing effectively aligns the interests of the service users with the municipality's financial obligations, making it a favored choice for funding projects that generate specific, identifiable revenue streams.