90-6-310. Local government facility impact bonds.
90-6-310. Local government facility impact bonds. (1) When the need for the construction, renovation, improvement, or acquisition of local government facilities as a result of the large-scale mineral development is determined under 90-6-307, the owners of a large-scale mineral development may enter into a written agreement with the local government unit having the burden for the increased capital and operating costs expected to be incurred by the facilities. The local government unit may execute a written agreement with the owner of a large-scale mineral development for the issuance of any special industrial local government facility impact bonds provided for in this section.
(2) The agreement with the owners of a large-scale mineral development must provide for a payment guarantee through a third-party financial institution, in addition to the taxes imposed by the local government unit on property owners generally, of the principal and interest on the bonds provided for in this section. Payment will then be made by an annual special tax levy on the property of the large-scale mineral development sufficient to retire the principal and interest on these special impact bonds. The bonds may not be an obligation of the local government unit, but must be special obligations limited to the revenue derived from the special tax levy. A local government unit shall establish a levy and, to the extent bonds are issued as provided in this section, shall pledge the special fund and all revenue of the special tax levy to the repayment of the bonds.
(3) The debt limits set forth in 7-7-2203, 7-7-4201, and 20-9-406 do not apply to bonds issued in accordance with this section. The interest on the bonds is not subject to state taxes.
(4) The impact bonds must be authorized by the governing body of the local government unit by a resolution that states:
(a) the facility for which the bonds are issued;
(b) the amount of the bonds;
(c) the rate of interest the bonds bear;
(d) the date of the bonds and the maturity date or dates of the bonds;
(e) the dates interest is payable on the bonds;
(f) the redemption options, if any, with respect to the bonds; and
(g) the manner of execution of the bonds.
(5) The impact bonds must be:
(a) in registered form as to principal and interest;
(b) payable in installments and at times not exceeding 30 years from their date of issuance; and
(c) payable at a place or places and be evidenced in a manner the governing body determines is in the best interest of the local government unit.
(6) Any impact bonds issued under the authority of this section may be sold at public or private sale in a manner, at a time or times, and at a price above or below par as may be determined by the governing body of the local government unit. All expenses, premiums, and commissions that the local government unit considers necessary or advantageous in connection with the authorization, sale, and issuance of the bonds may be paid by the governing body of the local government unit from the proceeds of the sale of the bonds.
(7) If more than one local government unit adopts a resolution to issue impact bonds, the local government units may enter into an interlocal agreement under 7-11-101 through 7-11-105, 7-11-107, and 7-11-108, providing for the issue of impact bonds of the local government units to be combined in a single offering, if the governing body of each local government unit authorizing the bonds determines that the pooling of bonds:
(a) is in the best interest of the local government units;
(b) will facilitate the sale of the bonds under more advantageous terms;
(c) will lower the interest rates; or
(d) will lower the cost of issuance.
(8) In addition to the specific requirements of 7-11-105, the interlocal agreement must provide:
(a) that the bond titles must denote that impact bonds of different local government units have been pooled and must refer to each local government unit executing the interlocal agreement;
(b) for a single debt service fund, to be held by a qualified trust company, to which each local government unit shall pledge and pay the annual special tax levies levied against the large-scale mineral development; and
(c) that the bonds are payable solely from and against the debt service funds under the interlocal agreement.
History: En. Sec. 11, Ch. 617, L. 1981; amd. Sec. 2, Ch. 227, L. 1991; amd. Sec. 3, Ch. 464, L. 1999.