Joint public agency bonding power change advanced

Lawmakers amended and advanced a bill April 28 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 offered an amendment on select file that would authorize a JPA to issue refunding bonds that are payable from the same security and tax levy authority as bonds being refunded without holding an election if the issuance of the refunding bonds does not allow additional principal and does not allow extension of the final maturity date of the indebtedness.

She said the amendment would address concerns expressed on general file and give public entities an opportunity to save money.

“It allows refinancing of existing bonds as long as there is not an increase in the amount of principal,” she said.

The bill also specifies election procedures that would be required prior to a JPA issuing a general obligation bond paid by a property tax and clarifies the electorate that would vote on a bond issue if the participating public agencies have overlapping jurisdiction of a geographic area.

Following adoption of the Ebke amendment 30-0, the bill was advanced to select file by voice vote.