Municipal bonds are used by local governments to finance public projects, such as building new roads, water and sewer systems, and facilities. They also are investment vehicles for public and private investors seeking predictable returns. One result of the recession, however, was instability in the municipal bond market as governments had trouble finding investors for their bonds because of doubts about governments' ability to pay them back.

As a result of that and other changes in the municipal bond market, American City & County follows the issues that affect the investments and governments' ability to finance public projects.