§ 26282 Refunding Bonds Exemption

• •Refunding bonds are not considered new debt, so they don’t need voter approval.
• •The government can decide to pay back these bonds early if they want.
• •The rules for paying back early are set when the bonds are first issued.

Imagine the city took out a loan to fix roads and now wants to replace that loan with a better one to save money.

The city doesn’t need to ask voters for permission to do this because it’s not new debt. They can also decide to pay it back early if it makes sense.