§ 57530 Revenue Enterprise Protection Rules

• •If a city has a business that makes money (like a parking garage or water service), and they borrowed money using that business as a promise to pay back, they can't sell or mess with that business until all the borrowed money is paid back.
• •The city also can't sell or use the money made by that business for other things until the debt is fully paid.
• •The only time they can sell or change things is if the original agreement (the paper they signed when they borrowed the money) says they can.

A city owns a parking garage that makes money every day from parking fees. The city borrowed $1 million to build the garage and promised to pay it back using the parking fees.

The city can't sell the parking garage or use the parking fees for something else (like building a park) until the $1 million plus any extra costs (like interest) is fully paid back. If they try to sell it before paying the debt, they’re breaking the law.