What event typically prompts a community to sell bonds?

Selling bonds is commonly associated with the need to raise significant capital for projects or events that require immediate and substantial funding, particularly in the case of unforeseen circumstances. When a community faces a catastrophe, such as a natural disaster or a public health crisis, the financial impact can overwhelm routine budgetary capabilities. In such scenarios, bonds provide a mechanism to generate immediate funds that can be deployed quickly for recovery efforts, infrastructure repairs, and other essential services. This approach allows communities to address urgent needs without waiting for the longer process of budget adjustments or reallocating existing funds. Thus, the primary purpose of selling bonds in this context is to secure the necessary resources to respond swiftly to critical situations.