Nebraska
State Statutes (as of
4/24/07)
Municipal Infrastructure Redevelopment Fund Act
______________________________________________________________
Section 18-2601
Act, how cited.
Sections
18-2601 to 18-2609 shall be known and may be cited as the Municipal
Infrastructure Redevelopment Fund Act.
Source:
Laws 1989, LB 683, ? 2
Laws 2000, LB 968, ? 6
Section 18-2602
Legislative findings.
The
Legislature finds that the municipalities of the state face an urgent need to
construct, upgrade, and develop municipal infrastructure facilities. By
providing basic public facilities, the municipalities of the state provide the
building blocks for economic development. Not only does the investment in infrastructure
generate an immediate stream of economic activity, it also lays the groundwork
for private investment that will use the facilities so provided. Municipalities
in the state currently are in critical need of assistance in providing these
facilities.
The
Legislature determines that it is in the public interest to establish a
Municipal Infrastructure Redevelopment Fund to provide funds to municipalities
in the state to use to provide infrastructure facilities and to permit
municipalities in the state to issue bonds secured by amounts payable from the
Municipal Infrastructure Redevelopment Fund and other sources.
Source:
Laws 1989, LB 683, ? 3
Laws 2000, LB 968, ? 7
Section 18-2603
Terms, defined.
For
purposes of the Municipal Infrastructure Redevelopment Fund Act:
(1) Bond
means any evidence of indebtedness, including, but not limited to, bonds, notes
including notes issued pending long-term financing arrangements, warrants,
debentures, obligations under a loan agreement or a lease-purchase agreement,
or any similar instrument or obligation;
(2) Fund
means the Municipal Infrastructure Redevelopment Fund;
(3)
Infrastructure project means any of the following projects, or any combination
thereof, to be owned or operated by a municipality: Solid waste management
facilities; wastewater, storm water, and water treatment works and systems,
water distribution facilities, and water resources projects, including, but not
limited to, pumping stations, transmission lines, and mains and their
appurtenances; hazardous waste disposal systems; resource recovery systems;
airports; port facilities; buildings and capital equipment used in the
operations and activities of municipal government and to provide services to
the residents of the municipality; convention and tourism facilities;
redevelopment projects as defined in section 18-2103; and mass transit and
other transportation systems, including parking facilities and excluding public
highways and bridges and municipal roads, streets, and bridges;
(4)
Municipal allocation amount means, for each municipality, the amount derived by
multiplying the amount to be allocated by the fraction determined by dividing
the total population of the municipality by the total population of the state
living in municipalities, each as determined by the most recent federal census
figures certified by the Tax Commissioner as provided in section 77-3,119; and
(5) Municipality means any
city of the primary class. (population 100,000-
299,000 - i.e. Lincoln)
Source:
Laws 1989, LB 683, ? 4
Laws 1993, LB 726, ? 8
Laws 1994, LB 1127, ? 4
Laws 2000, LB 968, ? 8
Laws 2003, LB 440, ? 1
Laws 2005, LB 426, ? 10
Section 18-2604
Municipal Infrastructure Redevelopment Fund; created; investment.
There is
hereby created in the state treasury a cash fund to be known as the Municipal
Infrastructure Redevelopment Fund. The fund shall have a separate account for
each municipality in the state. Money shall be deposited into the fund pursuant
to section 77-2602.
Any money
in the fund available for investment shall be invested by the state investment
officer pursuant to the Nebraska Capital Expansion Act and the Nebraska State
Funds Investment Act. Investment earnings on each account shall be credited to
that account.
Source:
Laws 1989, LB 683, ? 5
Laws 1994, LB 1066, ? 13
Cross References:
Nebraska Capital Expansion Act,see section 72-1269.
Nebraska State Funds Investment Act,see
section 72-1260.
Section 18-2605
State Treasurer; distribute funds.
Five
business days prior to each January 1 and July 1, the State Treasurer shall
distribute the amounts on deposit in the fund by crediting the municipal
allocation amount to each municipality's account and immediately disbursing
such amount to the municipality or, upon notice to the State Treasurer from the
municipality, its assignee.
Source:
Laws 1989, LB 683, ? 6
Section 18-2606
Funds; use by municipality.
Money
received by a municipality or credited to its account from the fund shall be
used for one of the following purposes:
(1) To pay
for the construction, acquisition, or equipping of infrastructure projects or
portions thereof; or
(2) To pay
principal, interest, premium, and costs of issuance on bonds issued by the
municipality to finance the construction, acquisition, or equipping of
infrastructure projects or portions thereof.
Source:
Laws 1989, LB 683, ? 7
Laws 2000, LB 968, ? 9
Section 18-2607
Municipality; pledge of funds; effect.
Each
municipality shall be permitted to pledge the amounts on deposit or to be
deposited in its account of the fund, as and when appropriated by the
Legislature, to the holders of any bonds issued by the municipality to finance
the construction, acquisition, or equipping of infrastructure projects as long
as the lien of such pledge does not attach until funds are actually deposited
into the municipality's account, and in no event shall such a pledge be
construed as an obligation of the Legislature to appropriate such funds. Any
such pledge shall be valid and binding from the time when the pledge is made.
The money so pledged and thereafter received by the municipality or deposited
into its respective account shall immediately be subject to the lien of such
pledge without any physical delivery thereof or further act, and the lien of
any such pledge shall be valid and binding as against all parties having claims
of any kind in tort, contract, or otherwise against the municipality,
irrespective of whether the parties have notice thereof. Neither the resolution
nor any other instrument by which a pledge is created need be recorded.
Source:
Laws 1989, LB 683, ? 8
Laws 2000, LB 968, ? 10
Section 18-2608
Bonds; state; no obligation; statement.
No bonds
issued by any municipality which pledges funds to be deposited in its account
of the fund shall constitute a debt, liability, or general obligation of this
state or a pledge of the faith and credit of this state but shall be payable,
to the extent payable from state revenue, solely from amounts credited to the
accounts of the fund as provided by the Municipal Infrastructure Redevelopment
Fund Act, as and when appropriated by the Legislature. Each bond issued by any
municipality which pledges funds to be deposited in its account of the fund
shall contain on the face thereof a statement that neither the faith and credit
nor the taxing power of this state is pledged to the payment of the principal
of or the interest on such bond.
Source:
Laws 1989, LB 683, ? 9
Laws 2000, LB 968, ? 11
Section 18-2609
Bond issuance; conditions.
Any
municipality may by ordinance issue bonds in one or more series for the
construction or acquisition of an infrastructure project or any portion thereof
and pay the principal of and interest on any such bonds by pledging funds
received from the fund. Such bonds shall have a final maturity not later than
August 1, 2009, and the aggregate debt service payments and related expenses
with respect to all series of such bonds for any twelve-month period during
which such bonds are outstanding shall not exceed the anticipated receipts from
the fund by such municipality. For purposes of this section, anticipated
receipts means the amount received by the municipality from the fund for
the twelve-month period immediately preceding the date of issuance of such
bonds.
Any
municipality which has or may issue bonds under this section may dedicate a
portion of its property tax levy authority as provided in section 77-3442 to
meet debt service obligations under the bonds, but only to the extent the
receipts from the fund pledged to the payment of such bonds and any other money
made available and used for that purpose are insufficient to pay the principal
of and interest on such bonds as they mature.
Source:
Laws 2000, LB 968, ? 12