§ 50226 Bonded Indebtedness For Transit

• •If the district needs to build or buy something big (like transit facilities) but doesn't have enough money from its usual income, it can ask voters for permission to borrow money by selling bonds.
• •The board must first decide (with at least two-thirds of its members agreeing) that the project is really needed and too expensive for the regular budget.
• •Then, the board can call for a special vote (election) where the people in the district decide if they want the district to borrow the money.

A city needs a new train system to help people get around, but it costs way more money than the city makes in a year.

The city leaders vote and agree they need the train. Then, they ask the people who live in the city to vote on whether the city should borrow money (by selling bonds) to build the train.