§ 13183 Borrowing Limit For Revenues

• •You can't borrow more than half of the money you made last year from the project you're borrowing for.
• •This rule is about keeping borrowing under control so you don't owe too much.
• •It applies to any loans or debts taken out for a specific project or work.

A city wants to borrow money to fix up a park.

If the park made $100,000 last year from things like rentals or events, the city can't borrow more than $50,000 to fix it up. This keeps them from borrowing too much and getting into money trouble.