Bonds; authorize issuance to assist City of Booneville with certain sewer system improvements.
Impact
The bill allows for the issuance of up to $1,795,000 in bonds, facilitating necessary municipal improvements. Specifically, it creates a special fund—designated the '2022 City of Booneville Sewer System Fund'—which will be maintained separately from the state’s General Fund. Importantly, any unspent funds at the end of the fiscal year will not lapse back into the General Fund, thereby allowing continued use for the intended projects. The legislation requires that remaining funds be applied toward paying down the debt incurred from these bond issuances once projects are completed.
Summary
House Bill 1670 authorizes the issuance of state general obligation bonds to provide financial support to the City of Booneville, Mississippi. The primary use of the funds generated from these bonds is to aid in the repair, replacement, adjustment, and relocation of sewer lines and related sewer infrastructure located near the Northeast Mississippi Community College football field. This initiative is crucial for improving the local sewage system and ensuring it meets operational standards, especially considering the focal location near a community institution.
Contention
While the bill centers on necessary infrastructure improvements, it also reflects broader fiscal considerations about state bonding practices. There could be concerns regarding how the issuance of these bonds may affect the state's obligations toward other financial commitments. However, the legislation includes protections to ensure bonds issued under this act remain general obligations of the state, supported by the state's full faith and credit. This commitment aims to assure bondholders that the state will meet its financial obligations, maintaining trust in state financing practices.