Municipal borrowing options expanded

Senators passed a bill July 21 that allows cities and villages to borrow money after a calamity.

Sen. Sue Crawford
Sen. Sue Crawford

LB870, introduced by Bellevue Sen. Sue Crawford, allows cities and villages to borrow directly from a financial institution to repair or rebuild property or restore public services damaged or disrupted by a natural disaster.

The bill limits direct borrowing to 20 percent of the annual budget of a second class city or village or 10 percent for a first, primary or metropolitan class city.

LB870 was approved on a 48-0 vote and takes effect immediately.

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