§ 13202 Bonded Indebtedness For Utilities

• •If a group (like a city council) decides they need to build or buy something big and expensive (like a new park or water system), but they don’t have enough money from their usual budget, they can ask the people who live there to vote on it.
• •The group must agree strongly—at least two-thirds of them must say yes—before they can even ask the voters.
• •If the voters say yes in a special vote, the group can borrow money (by selling bonds) to pay for the big project.
• •This is only for really big, important things that cost too much to pay for all at once.

A small town needs a new water treatment plant because the old one is broken and making people sick. The plant will cost $10 million, but the town only has $1 million in its yearly budget.

The town council votes, and 7 out of 9 members agree they need the new plant. They then hold a special vote where all the town’s residents can say yes or no. If most residents vote yes, the town can borrow the $10 million by selling bonds to build the plant.