Missoula County opposes SB 77 as amended: Revised special district financing and dissolution provisions heard on Jan. 15 in the Senate Taxation Committee. As amended, SB 77 expands the limitations imposed in the initial bill, limited to special districts that cover an entire area of a local government, to all special districts. SB 77, as amended, would hamper local governments’ abilities to address community specific needs related to water, sewer, road and other improvements that are funded through special districts. Missoula County has many special districts that help to fund critical water and sewer projects, which now would be unable to bond after the seventh year. Infrastructure failures, even with maintenance, do not occur on a scheduled timeline. We saw such a circumstance in the community of Lolo just last year. While repairs were able to be made without bonding, if that option was needed, under SB 77 it would be unavailable, potentially leaving the community without the infrastructure they need.
There are special districts that constitute a small portion of a municipality or a county (i.e., that are not jurisdiction wide) that were created by resolution of intention and protest and that have bonds outstanding. The governing body of these special districts made covenants in the bond resolution to levy assessments in an amount at least sufficient to produce revenues to pay the bonds as due. The limitation on increases to the total amount assessed to inflation will run afoul of those bond covenants.
Senator O’Brien,
ReplyDeleteMissoula County opposes SB 77 as amended: Revised special district financing and dissolution provisions heard on Jan. 15 in the Senate Taxation Committee. As amended, SB 77 expands the limitations imposed in the initial bill, limited to special districts that cover an entire area of a local government, to all special districts. SB 77, as amended, would hamper local governments’ abilities to address community specific needs related to water, sewer, road and other improvements that are funded through special districts. Missoula County has many special districts that help to fund critical water and sewer projects, which now would be unable to bond after the seventh year. Infrastructure failures, even with maintenance, do not occur on a scheduled timeline. We saw such a circumstance in the community of Lolo just last year. While repairs were able to be made without bonding, if that option was needed, under SB 77 it would be unavailable, potentially leaving the community without the infrastructure they need.
There are special districts that constitute a small portion of a municipality or a county (i.e., that are not jurisdiction wide) that were created by resolution of intention and protest and that have bonds outstanding. The governing body of these special districts made covenants in the bond resolution to levy assessments in an amount at least sufficient to produce revenues to pay the bonds as due. The limitation on increases to the total amount assessed to inflation will run afoul of those bond covenants.
Please oppose SB 77 as amended.