MS SB2907

Authorizes issuance of $10,000,000 in state general obligation bonds to provide funds for the Small Municipalities and Limited Population Counties Fund.

Bonds may be issued by the Mississippi Development Authority (MDA) through the State Bond Commission, with all bonds required to be issued by July 1, 2014, and maturing within 25 years.

Bond proceeds must be deposited into the Small Municipalities and Limited Population Counties Fund to make grants to municipalities with populations of 10,000 or less and counties with populations of 30,000 or less for infrastructure projects.

Grants to eligible municipalities or counties cannot exceed $250,000 per grant period, and MDA may use up to 3 percent of bond proceeds for reasonable administrative costs related to the projects funded.

Bonds are general obligations of the State of Mississippi backed by full faith and credit; bond income is exempt from state taxation and qualifies as legal investments for state fiduciaries and financial institutions.