§ 8021 Special Election Bond Requirements

• •Before a city can borrow money by selling bonds, they must hold a special vote.
• •The city must tell voters exactly why they need the money and how much they plan to spend.
• •The city must explain how many bonds they will sell, the interest rate, and how much extra tax people will pay each year to pay it back.

A city wants to build a new park but doesn’t have enough money. They decide to borrow money by selling bonds.

The city must hold a special vote and tell everyone: 'We need $1,000,000 to build a park. We will sell 1,000 bonds, pay 3% interest, and you’ll pay a little extra tax each year until the money is paid back.' If most people vote yes, the city can borrow the money.