Bonds; authorize issuance to assist City of Jackson with drainage channel improvements.
Impact
The bill establishes a special fund named the '2022 City of Jackson Drainage Channels Improvements Fund' within the State Treasury. This fund will be maintained separately from the state General Fund, ensuring that unspent funds do not lapse. The issuance of bonds under this act is capped at a total amount of $200,000, with the interest on these bonds being exempt from taxation in Mississippi, which may provide an incentive for potential investors and ensure lower costs of borrowing for the city.
Summary
House Bill 1711 authorizes the issuance of state general obligation bonds to provide financial assistance to the City of Jackson, Mississippi. The primary purpose of these funds is to cover costs associated with repairing, restoring, and upgrading drainage channels in Subdistrict 2 of the City of Jackson. This funding mechanism aims to enhance the infrastructure related to drainage, which is critical for managing stormwater and preventing flooding in the area.
Contention
There may be notable points of contention surrounding the funding for infrastructure improvements, particularly in how state resources are allocated. Concerns may arise regarding the reliance on bond financing, which ties the city's future financial obligations to the state’s ability to manage and pay off these bonds responsibly. Furthermore, stakeholders in the community may debate the adequacy of $200,000 in addressing the drainage needs of Jackson given that larger infrastructure projects could require significantly more funding.
Local governments capital improvements revolving loan program; revise definition of "capital improvements", extend repealer on MDA authority to use certain funds for expenses.