§ 55112 Local Agency Bond Issuance

• •Local governments can borrow money (by selling bonds) to build or buy things like power plants or water treatment plants.
• •They can also use the money to buy a share of these plants or the right to use them.
• •This helps them pay for big projects without using all their money at once.

A city wants to build a new water treatment plant but doesn't have enough money right now.

The city can sell bonds to get the money they need to build the plant. People who buy the bonds are lending the city money, and the city will pay them back over time.