HSB 62

This bill relates to city finances by amending the definition of “essential corporate purpose” and provisions relating to the issuance of general obligation bonds. _____ approval. The definition of “essential corporate purpose” includes, in part, the construction, reconstruction, and repair of sidewalks and pedestrian underpasses and overpasses, and the acquisition of real estate needed for such purposes. The bill adds the construction, reconstruction, and repair of trails and the acquisition of real estate needed for such purposes to that portion of the definition. The bill also adds the following to the definition of “essential corporate purpose”: (1) the acquisition, construction, reconstruction, improvement, repair, and equipping of a public safety or emergency services facility; and (2) the rehabilitation, reconstruction, improvement, enlargement, repair, and equipping of any building or facility for which the issuance of bonds for the original construction of the building or facility, or a portion thereof, was previously approved at election or if a petition for an election was not filed after notice of the proposed bond issuance was published. If a city proposes to carry out a general corporate purpose using funds from the issuance of general obligation bonds, generally the issuance of such bonds must first be approved at election. Current law establishes an exception by providing that a city, in lieu of calling an election, may institute proceedings for the issuance of bonds for a general municipal purpose by notice and publication of the proposal to issue the bonds that includes a notice of the right to petition for an election, subject to the following bond amount and city population limitations: (1) in cities having a population of 5,000 or less, in an amount of not more than $400,000; (2) in cities having a population of over 5,000 and not over 75,000, in an amount of not more than $700,000; and (3) in cities having a population of over 75,000, in an amount of not more than $1 million. _____ bonds be submitted to the registered voters of the city, the city council shall either by resolution declare the proposal to issue the bonds to have been abandoned or shall direct the county commissioner of elections to call a special election upon the question of issuing the bonds. The bill increases the bond amount limitations for each of the city population categories to the following amounts: (1) in counties having a population of 5,000 or less, in an amount of not more than $800,000; (2) in cities having a population of over 5,000 and not over 75,000, in an amount of not more than $1,400,000; and (3) in cities having a population of over 75,000, in an amount of not more than $2 million. In addition, the bill provides for such bond amount limitations to be adjusted and published annually by the department of management based on a specified consumer price index and requires each city’s population to be determined based on the most recent population estimate produced by the United States census bureau.