Bonds; authorize issuance to assist the Old Union Water Association with system improvements.
Impact
The total amount of bonds that can be issued under this act is capped at $500,000, and no bonds shall be issued after July 1, 2028. The generated funds will be allocated specifically for the mentioned infrastructure upgrades, which underscores the importance of maintaining and modernizing water systems in rural communities. Additionally, the act establishes a special fund within the State Treasury, ensuring that the allocated resources for these improvements are segregated and efficiently utilized without lapsing into the general fund at the end of the fiscal year.
Summary
House Bill 216 authorizes the issuance of state general obligation bonds to assist the Old Union Water Association in Lee County, Mississippi. The primary purpose of these bonds is to fund the costs associated with the construction, repair, replacement, upgrades, and improvements to the water system and related infrastructure of the association. This initiative is aimed at enhancing the water supply and distribution system in that region, making it imperative for public health and community well-being.
Contention
While the bill seeks to improve essential water services in the locality, the implications of funding such projects through general obligation bonds raise discussions about long-term fiscal responsibility. There may be concerns regarding the state's ability to service the bonds issued, as their repayment is backed by the full faith and credit of the state. This situation necessitates careful consideration by lawmakers and community stakeholders regarding debt service and ongoing maintenance costs associated with enhanced water infrastructure over time.
Local governments capital improvements revolving loan program; revise definition of "capital improvements", extend repealer on MDA authority to use certain funds for expenses.