MS SB2951

Authorizes issuance of $10,000,000 in state general obligation bonds to fund the Small Municipalities and Limited Population Counties Fund, with all bonds to be issued by July 1, 2018.

Bonds are general obligations of Mississippi backed by full faith and credit of the state; if legislative appropriations are insufficient, the State Treasurer must cover deficiencies from other state funds.

Bond proceeds must be deposited into the Small Municipalities and Limited Population Counties Fund and may only be used for grants to eligible municipalities and counties for approved projects including highways, bridges, utilities, and equipment acquisition.

Allows Mississippi Development Authority to reimburse reasonable administrative costs up to 3% of bond proceeds for each project from the fund, with detailed accounting requirements and restriction that reimbursements cannot exceed applicable federal tax law limits.

Defines eligible recipients as small municipalities (10,000 population or less) and limited population counties (30,000 population or less), with individual grants capped at $250,000 per grant period; MDA establishes grant program and must file annual reports to Governor and Legislature.