§ 54552 Bond Revenue Fiscal Authority

• •A local government can let someone else handle money from a project or business.
• •This person can collect, hold, and spend the money to pay back loans (bonds) for the project.
• •The rules for how the money is used are written down in a special paper (resolution) when the loan is approved.

A city builds a new park using a loan. They hire a bank to manage the money from park fees.

The bank collects the fees from people using the park and uses that money to pay back the loan the city took to build the park. The city already wrote rules about how the bank should do this when they agreed to the loan.