MS HB1685

Authorizes issuance of state general obligation bonds up to $5,000,000 to assist City of Hattiesburg with costs of designing, replacing, repairing, and upgrading water lines and infrastructure formerly served by Central Utility Association and Palmers Crossing Utility Association.

Creates the "2016 City of Hattiesburg Water System Infrastructure Improvements Fund" within State Treasury as a separate fund to receive bond proceeds and disburse funds for eligible water system projects.

Bonds may be issued through July 1, 2020, with maturity not exceeding 25 years from date of issue, and shall be general obligations backed by the full faith and credit of the State of Mississippi.

Any remaining fund balance after project completion shall be applied to pay debt service on the bonds, and investment earnings on the fund shall be used for debt service payments.

Bonds and income are exempt from Mississippi state taxation and are legal investments for trustees, fiduciaries, banks, and insurance companies.