No, the bondholders assume the risk, not the citizens of Glendale (as you yourself noted in your penultimate sentence). They are not the same thing. You seemed to understand that in your post, but your last sentence seems to be a nonsequitur.
Having some financial experience, here is my take on bond offerings. Typically when bonds are sold by any level of government, they are backed by the same, in this case, the municipality of CoG. So whenever repayment of the bonds occurs, it will be the CoG on the hook, no question. The monies raised from these bonds will fund the losses of the Coyotes, so it will have to be repaid at some point. If it doesn`t come from the Coyotes, it will come from the municipality as they are the issuers.