Senate Bill 3011 Summary

• Establishes a Municipal Utility Service Expansion Revolving Loan Fund administered by the Mississippi Development Authority to provide loans to incorporated municipalities for expanding water, sewer, and natural gas utility services into unincorporated areas.

• Authorizes issuance of up to $5,000,000 in general obligation bonds by the State Bond Commission, with proceeds deposited into the revolving fund and all bonds to be issued by July 1, 2015.

• Provides that loans to municipalities shall bear no interest, cover up to 100% of eligible project costs, and be repaid within 20 years from project completion through pledged sales tax revenue distributions.

• Requires the State Auditor to audit municipalities with delinquent loan payments and directs the Department of Finance and Administration to withhold sales tax allocations until payments are current.

• Establishes that bonds are general obligations of the State with full faith and credit pledged for repayment, are exempt from Mississippi taxation, and bonds mature within 25 years from issuance.