BONDED
INDEBTEDNESS
It is the intent of the Montana Association of Counties
to seek legislation to exempt levies pledged against indebtedness from the
provisions for voter approval established in MCA 15-10-420.
Whereas, local government have debt mechanisms which are predicated upon the local governments ability to guarantee to make payments, if necessary, through taxes levied against property within the local government jurisdiction; and
Whereas, under MCA 15-10-412, such an exemption was provided and the limitation on the amount of taxes levied did not apply to “levies pledged for the repayment of bonded indebtedness, including tax increment bonds;” and
Whereas, Bond Counsel is hesitant to provide unqualified opinions as to the issuance of debt, based upon repayment being dependent upon subsequent approval of the voters, for debt issued on their behalf.
Now, therefore, be it resolved that the Montana Association of Counties will seek to amend MCA 15-10-420, consistent with the exemption previously authorized in MCA 15-10-412.
SPONSOR: MACo Joint Powers Insurance Authority
RECOMMENDATION: Do Pass
PRIORITY: High
REFERED TO: MACo Resolutions Committee
ADOPTED: Annual Conference; Big Sky, MT
September 25, 2002
RECOMMENDATION: Do Pass, MACo Resolutions Committee
September 1, 2004
PRIORITY: Low
REFERRED TO: MACo Resolutions Committee
ADOPTED: