1.1.3 Borrowing Authority of Charter Cities

A California city can be a “charter city,” with a voter approved city charter, or a “general law” city. Approximately one quarter of the cities in California are charter cities. The balance are general law cities.41

Article XI, Section 5 of the California Constitution provides that charter cities (but not general law cities) may operate under separate charters that govern the city with respect to all municipal affairs, subject only to the limitations in their charters and the Constitution. Charter cities in California must look to their city charters for the authorization to borrow. Charter cities are also subject to state laws addressing issues of “statewide concern,” and like all public agencies, are subject to the California Constitution. The scope of charter city powers related to debt financing is discussed in Section 1.5, Charter Cities.