§ 98311 Bonded Indebtedness For Transit

• •If the district needs to build or buy something big (like buses, train tracks, or land) but doesn't have enough money from their usual income, they can ask the people who live there to vote on it.
• •The district's leaders must first agree (with at least two-thirds of them saying yes) that the thing they want to buy or build is really needed.
• •If the leaders agree, they can set up a special vote where everyone in the district can say yes or no to the district borrowing money (by selling bonds) to pay for the big thing.
• •The district can only do this if the thing they want is too expensive to pay for with their normal yearly money.

A city needs a new train system to help people get to work, but it costs way more money than the city makes in a year from taxes and bus fares.

The city leaders vote and most of them agree the train is needed. Then, they ask all the people in the city to vote on whether the city should borrow money to build the train. If most people vote yes, the city can borrow the money by selling bonds.