MS SB2306

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, 2023.

Bonds are general obligations of Mississippi backed by the full faith and credit of the state; principal and interest payments are guaranteed by the State Treasurer and Department of Finance and Administration.

Bond proceeds deposited into the Small Municipalities and Limited Population Counties Fund are used to make grants to municipalities with populations of 10,000 or less and counties with populations of 30,000 or less for infrastructure projects including roads, bridges, utilities, and equipment.

Allows the Mississippi Development Authority to use up to 3 percent of bond proceeds per project to reimburse reasonable administrative costs incurred in providing assistance related to funded projects.

Bonds have a maturity period not to exceed 25 years, are tax-exempt in Mississippi, and qualify as legal investments for trustees, fiduciaries, and financial institutions.