Joint public agency bonding power change advanced

Lawmakers gave first-round approval April 9 to a bill that would change the bonding power of any joint public agency (JPA).

LB132, introduced by Crete Sen. Laura Ebke, would require a JPA to follow the bond issuance procedures required by law for the participating public agency from which the JPA derived taxation powers.

Ebke said the JPA Act—created in 1999 to encourage cooperation among local public agencies—contains a loophole that allows JPAs to issue bonds without public hearings or a public vote.

“By closing this loophole, it returns JPAs to their original purpose,” Ebke said. “We’re ensuring that citizens have a say in taxation that might affect them.”

A Government, Military and Veterans Affairs Committee amendment, adopted 27-0, specifies election procedures that would be required prior to a JPA issuing a general obligation bond paid by a property tax.

The amendment also clarifies the electorate that would vote on a bond issue if the participating public agencies have overlapping jurisdiction of a geographic area.

Lincoln Sen. Adam Morfeld supported the bill, but said some concerns remained regarding the authority to refinance bonds at a better rate. Morfeld suggested that an amendment on select file might address those concerns.

“If we can save a few million of taxpayers’ funds by refinancing, I think it’s important to allow for that explicitly in the bill,” he said.

The bill advanced from general file on a 28-0 vote.