§ 43721 City Bond Issuance Authority

• •The city can decide to pay off its debts early or on time.
• •To do this, they need a big vote—at least two-thirds of the leaders must agree.
• •If they agree, the city can issue new bonds (like borrowing money) to cover the old debts.

Imagine your city owes $100 million, and the payment is due in 5 years. The leaders think it’s better to pay it now to save money.

The city leaders vote, and 70 out of 100 agree to pay the debt early. They decide to borrow $100 million by selling bonds to pay off the old debt right away.