§ 1115 Bond Refunding Approval

• •Voter approval of bonds includes approval for any later refunding bonds.
• •Refunding must follow the rules in Article 6 of the State General Obligation Bond Law.
• •The law ties the original bond issue and any refinancing together in one voter approval.

A city sells bonds to build a new library. A few years later the city wants to refinance those bonds at a lower interest rate, so it issues new bonds to pay off the old ones.

Because the voters already approved the original library bonds, the law says that approval also covers the new refinancing bonds, so the city can go ahead without needing a new vote.