What are long-term bonds typically issued after?

Long-term bonds are typically issued after the issuance of Bond Anticipation Notes (BANs) for project funding. BANs serve as short-term financing tools that municipalities often use to fund projects while awaiting long-term financing. When a project has been initiated and the need for permanent financing arises, the municipality will issue long-term bonds to pay off the BANs and finance the project for a longer period.

This process allows municipalities to manage their cash flow effectively and ensure that they can start important projects without delay. The transition from BANs to long-term bonds is a standard financial practice, as it reflects the completion of the short-term funding period and the readiness for a more stable, long-term financing arrangement.