§ 16846 Bond Approval For Utilities

• •If a city wants to borrow money to buy or build something big (like water pipes or power lines), they have to ask the people first.
• •The city must tell people exactly how much money they want to borrow, how much interest they’ll pay, and what they’ll use the money for.
• •At least two-thirds of the voters must say 'yes' for the city to borrow the money.

A small town wants to build a new water treatment plant that costs $10 million. They need to borrow the money by selling bonds (like a loan).

The town must hold a vote and tell everyone: 'We want to borrow $10 million, pay 3% interest, and use the money for the water plant.' If 1,000 people vote, at least 667 must vote 'yes' for the town to get the loan.