Mississippi House Bill HB1515

Mississippi 2022 Regular Session

• Introduced: 1/17/22
• Refer: 1/17/22
• Failed: 2/23/22

Caption

Bonds; authorize issuance to assist City of Greenville in paying costs of improvements to its water and sewer systems.

Impact

The funds from the bonds, amounting to no more than five million dollars, will be allocated at the discretion of the Department of Finance and Administration. These funds can only be utilized for the costs associated with the specified water and sewer improvements. The legislation also ensures that any unspent funds at the end of a fiscal year will not revert to the state’s General Fund but will remain in the special fund for future use. Furthermore, bondholders are provided substantial guarantees regarding the repayment of principal and interest through the state's full faith and credit.

Summary

House Bill 1515 authorizes the issuance of state general obligation bonds to provide financial assistance for improvements to the water and sewer systems in the City of Greenville, Mississippi. The measure is aimed at addressing the infrastructure needs of the city, which has been challenged by insufficient resources for maintaining and upgrading essential public utilities. The bill outlines the creation of a special fund, designated as the '2022 City of Greenville Water and Sewer Systems Fund,' within the state treasury to manage these financial provisions.

Contention

While the bill is intended to facilitate critical infrastructure improvements, it may face scrutiny regarding the long-term fiscal implications of issuing bonds. Questions may arise regarding the city's ability to maintain such infrastructure costs and whether reliance on state-issued bonds could set a precedent for future infrastructure funding. Additionally, stakeholders may express concerns over the prioritization of funds, particularly in a state with numerous towns facing similar infrastructural challenges.