Joint public agency bonding powers changed

Lawmakers passed a bill May 7 that changes the bonding power of a joint public agency (JPA).

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

Under the bill, a JPA may 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.

LB132 also specifies election procedures that will be required prior to a JPA issuing a general obligation bond paid by a property tax and clarifies the electorate that will vote on a bond issue if the participating public agencies have overlapping jurisdiction of a geographic area.

The bill passed 47-1.