Connecticut House Bill HB05479

Connecticut 2010 Regular Session

• Introduced: 3/8/10
• Refer: 3/8/10

Caption

An Act Concerning The Amortization Schedule For Bonds Issued By Municipalities.

Impact

The proposed changes by HB 05479 are expected to benefit municipalities by facilitating more efficient debt management. By allowing flexibility in structuring debt repayment schedules, municipalities could issue bonds that better match their financial capabilities over time. This, in turn, could lead to enhanced fiscal stability as the mill levy impacts routine fiscal planning. Municipalities needing to align bond repayments with their budget cycles will find this provision particularly advantageous.

Summary

House Bill 05479 aims to amend the amortization schedule for bonds issued by municipalities to allow greater flexibility in their issuance. The bill proposes to adjust Section 7-371 of the general statutes, stipulating that bonds can either be serial or term bonds. This amendment seeks to ensure that the installments of principal and interest due can be more easily managed within the financial resources of municipalities, offering a more stable and predictable mill levy beyond its previous regulations.

Contention

One notable point of contention surrounding this bill is how it balances financial flexibility with the potential risks that arbitrarily changing amortization schedules may pose. Critics may argue that while municipalities gain flexibility, this could result in longer debt repayment periods or increased financial obligations if not vigilantly managed. Supporters, however, emphasize that the benefits of stable financial structuring, particularly in times of fluctuating economic conditions, are essential for the sustainable management of municipal resources.