AG says voter OK needed for cities' "cash out" refinancings of government bonds
Local governments and school districts, with voter approval, sell bonds to finance new buildings and other capital projects. If interest rates decline after the bonds are sold, governments often sell new “refunding” bonds to retire the original bonds–like refinancing a home mortgage. But suppose governments, when refunding, take “cash out” of the transaction by issuing more new debt than is needed to pay off the old debt? Does that practice, which is widespread in California,