Bill Text: MS SB2208 | 2010 | Regular Session | Introduced
Bill Title: Ad valorem tax; increase the maximum number of mills that can be levied for parks and playgrounds.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2010-02-02 - Died In Committee [SB2208 Detail]
Download: Mississippi-2010-SB2208-Introduced.html
MISSISSIPPI LEGISLATURE
2010 Regular Session
To: Municipalities; County Affairs
By: Senator(s) Dearing
Senate Bill 2208
AN ACT TO AMEND SECTION 17-21-53, MISSISSIPPI CODE OF 1972, TO INCREASE THE PERIOD OF TIME THAT NOTES OR CERTIFICATES OF INDEBTEDNESS ISSUED BY COUNTIES OR MUNICIPALITIES SHALL MATURE TO A PERIOD NOT TO EXCEED 10 YEARS FROM THE DATE OF THE ISSUANCE OF THE NOTES OR CERTIFICATES OF INDEBTEDNESS; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 17-21-53, Mississippi Code of 1972, is amended as follows:
17-21-53. (1) Before any money is borrowed under the provisions of this article, the governing authority shall adopt a resolution declaring the necessity for the borrowing and specifying the purpose for which the money borrowed is to be expended, the amount to be borrowed, the date or dates of the maturity thereof, and how the indebtedness is to be evidenced. The resolution shall be certified over the signature of the head of the governing authority.
(2) The borrowing shall be evidenced by negotiable notes or certificates of indebtedness of the governing authority which shall be signed by the head and clerk of the governing authority. All * * * notes or certificates of indebtedness shall be offered at public sale by the governing authority after not less than ten (10) days' advertising in a newspaper having general circulation within the governing authority. Each sale shall be made to the bidder offering the lowest rate of interest or whose bid represents the lowest net cost to the governing authority; however, the rate of interest shall not exceed that now or hereafter authorized in Section 75-17-101, Mississippi Code of 1972. No * * * notes or certificates of indebtedness shall be issued and sold for less than par and accrued interest. All notes or certificates of indebtedness shall mature in approximately equal installments of principal and interest over a period not to exceed ten (10) years from the dates of the issuance of the notes or certificates of indebtedness. Principal shall be payable annually, and interest shall be payable annually or semiannually; * * * however, * * * the first payment of principal or interest may be for any period not exceeding one (1) year. * * * However, if negotiable notes are outstanding from not more than one (1) previous issue authorized under the provisions of this article, then the schedule of payments for a new or supplementary issue may be so adjusted that the schedule of maturities of all notes or series of notes hereunder shall, when combined, mature in approximately equal installments of principal and interest over a period of ten (10) years from the date of the new or supplementary issue, or if a lower interest rate will thereby be secured on notes previously issued and outstanding, a portion of the proceeds of any issue authorized hereunder may be used to refund the balance of the indebtedness previously issued under the authority of this article. The notes or certificates of indebtedness shall be issued in such form and in such denominations as may be determined by the governing authority and may be made payable at the office of any bank or trust company selected by the governing authority. In such case, funds for the payment of principal and interest due on the notes shall be provided in the same manner provided by law for the payment of the principal and interest due on bonds issued by the governing authority.
(3) For the prompt payment of notes or certificates of indebtedness at maturity, both principal and interest, the full faith, credit and resources of the issuing entity are pledged. If the issuing entity does not have available funds in an amount sufficient to provide for the payment of principal and interest according to the terms of such notes or certificates of indebtedness, then the governing authority shall annually levy a special tax upon all of its taxable property at a rate the avails of which will be sufficient to provide the payment. Funds derived from the tax shall be paid into a sinking fund and used exclusively for the payment of principal of and interest on the notes or certificates of indebtedness. Until needed for expenditure, monies in the sinking fund may be invested in the same manner as the governing authority is elsewhere authorized by law to invest surplus funds.
SECTION 2. This act shall take effect and be in force from and after July 1, 2010.
