MISSISSIPPI LEGISLATURE

1997 Regular Session

To: Local and Private

By: Senator(s) Smith

AN ACT TO AUTHORIZE THE MAYOR AND BOARD OF ALDERMEN OF THE TOWN OF FLORENCE TO MAKE IMPROVEMENTS TO AND/OR EXTEND THE VARIOUS COMPONENTS OF THE TOWN'S INFRASTRUCTURE, TO ISSUE SPECIAL IMPROVEMENT BONDS, TO MAKE ASSESSMENTS ON PROPERTIES BENEFITED, OR NEGOTIATE AGREEMENTS IN LIEU THEREOF, AND FOR RELATED PURPOSES.  

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. The Mayor and Board of Alderman of the Town of Florence, Mississippi, are hereby authorized and empowered, in their discretion, to make improvements and/or extend and enlarge the various components of the town's infrastructure including, but not limited to, its waterworks and related fire-flow capability; wastewater collection, transport, treatment, and disposal system; storm drainage facilities, streets, and other components of the town's infrastructure, wholly or in part, at the cost of the property owners benefited thereby. The mayor and board of aldermen are hereby authorized to levy and collect special assessment on benefited properties, or negotiate debt service agreements in lieu thereof, and to issue negotiable special improvement bonds of the town not to exceed the maximum aggregate principal amount of Five Million Dollars ($5,000.000.00), to provide for financing such improvements as authorized in Sections 21-41-1 through 21-41-53, Mississippi Code of 1972, unless the terms of this act shall provide different terms or procedures.

Bonds issued pursuant to this act shall not be general obligations of the Town of Florence, Mississippi, but shall be payable as to principal and interest solely from payments on the special assessments or in lieu of agreements authorized by this act.

Bonds issued under the authority of this act shall not be considered in determining limitations of indebtedness as outlined in Section 21-33-303, Mississippi Code of 1972.

SECTION 2. All bonds issued under the authority of this act shall bear interest at such rate or rates not to exceed a net interest cost to maturity as provided in Section 75-17-103, Mississippi Code of 1972, or if such bonds are sold to an agency of the United States, the rate established by such agency but not exceeding that as provided in Section 75-17-103, Mississippi Code of 1972.

All bonds issued under the authority of this act shall be issued in accordance with the provisions of Section 21-33-301, Mississippi Code of 1972, the "Uniform System for Issuance of Municipal Bonds."

All bonds issued under the authority of this act shall comply with the details and requirements of Sections 21-33-313 and 21-33-315, Mississippi Code of 1972.

Bonds shall be sold for not less than par plus accrued interest at public sale in the manner provided by Section 31-19-25, Mississippi Code of 1972. In the event the Town of Florence shall have received a commitment from the United States of America or an agency thereof or the State of Mississippi or a department thereof for the purchase of all or any portion of an issue of such bonds, then such issue or any part thereof may be sold to the United States of America or an agency thereof or to the State of Mississippi or a department thereof at a private sale.

SECTION 3. The Town of Florence is authorized to contract with the United States of America or any agency thereof or the State of Mississippi or any department thereof for the sale of bonds issued in accordance with the provisions of this act or for the acceptance of a grant to aid such municipality in acquiring or improving any component of its infrastructure; and to borrow money in anticipation of receipt of funds from any confirmed loans or grants; such contracts may contain terms and conditions as may be agreed upon by and between the Town of Florence and the United States of America or any agency thereof or the State of Mississippi or any department thereof.

It is specifically provided that any bond issue to be awarded and sold to the United States of America or any agency thereof or to the State of Mississippi or any department thereof may be issued as one or more amortized bonds without coupons, may be dated as of the date of delivery thereof, and the purchase price for such bond or bonds may be delivered in multiple advances, with interest to accrue on the principal advanced from the date of each such advance. The amount of each such advance and the date thereof shall be registered on the reverse of each such bond and attested by the manual signature of the town clerk of the Town of Florence.

All bonds shall be executed on behalf of the town by the signature of the mayor and attested by the town clerk under the seal of the town.

SECTION 4. All special assessments levied under the provisions of this act, unless otherwise provided by the Mayor and Board of Aldermen of the Town of Florence, shall become due and shall be paid to the treasurer of the Town of Florence, or to the officer performing the duties of treasurer, in full within ninety (90) days after the date of confirmation thereof. The mayor and board of aldermen are authorized to confer, by resolution, upon the property owners who admit the legality of any assessment imposed hereunder, the privilege of paying such assessment in equal annual installments over a period not in excess of twenty-five (25) years, with interest from the date of the confirmation of such assessment at the same rate as that fixed for the bonds issued to pay the cost of such improvements if a single interest rate is fixed for the bonds. If more than one (1) interest rate is fixed for such bonds, then the mayor and board of aldermen shall designate the lowest interest rate which will produce sufficient funds to provide for the payment of principal and interest on the bonds as they mature and become due. Any property owner who shall not have taken an appeal from the assessment shall, upon failure to pay the assessment in full within ninety (90) days from the date of confirmation, be deemed to have elected to pay the assessment in installments as herein provided, and he shall thereby waive all right to contest the validity thereof. The installments of the assessment shall be due and payable at the same time that the annual tax becomes due and payable, commencing with the first municipal tax levy which is payable after the expiration of ninety (90) days from the date of confirmation of the assessment.

SECTION 5. The mayor and board of aldermen, at their discretion, may elect to enter into an agreement, and are hereby authorized to enter into an agreement, with the owners of land upon which a component of the town's infrastructure is installed or abuts, in lieu of making the assessment as authorized in Section 4 of this act. Provided, however, such agreement shall conform to all applicable provisions of this act.

The agreement shall include provisions establishing a lien on the lands benefited by the extension and enlargement of an individual component of the town's infrastructure.

The agreement shall include provisions for the removal of the lien upon a part of the property benefited when the obligation for payments to principal and interest on the bonds issued to pay the cost of the enlargement or extension, or the part of the obligation directly attributable to a specific part or parcel of land, is satisfied.

SECTION 6. Payments from beneficiaries participating in "in lieu" agreements and providing funds for payments to principal and interest on bonds issued for improvements under the provisions of this act shall be due and payable on or before the time at which annual taxes are due and payable; provided, however, the mayor and board of aldermen may, by resolution, formally recorded in the minutes of the proceedings of the board, establish some other date at which payments from beneficiaries are due and payable.

SECTION 7. The resolution declaring the intent of the Mayor and Board of Aldermen of the Town of Florence to proceed with the construction and installation of any component of its infrastructure as one of the special improvements authorized by this act may direct that all of the cost and expense of any component of the infrastructure and related appurtenances and facilities, or such part of the cost thereof as the mayor and board of aldermen shall charge upon the properties benefited, shall be assessed against the property being benefited according to the frontage rule, area rule, or as provided in "in lieu" agreement, all as outlined herein.

SECTION 8. The resolution declaring the intent of the mayor and board of aldermen to proceed with the construction of such infrastructure component or special improvements shall:

(a) Define the area to be benefited by each extension, enlargement, or improvement, each such improvement being designated as a project;

(b) Fix the amount or percentage of the charge to be levied upon the property benefited;

(c) Designate the minimum and maximum number of years between the date of the bonds and the maturity thereof;

(d) Delineate the method of determining the amount of special assessment to be levied on each lot or parcel of land; and

(e) Designate the minimum and maximum number of equal annual installments that the mayor and board of aldermen may later allow for the payment of such assessments with interest thereon.

SECTION 9. If the mayor and board of aldermen shall determine that the front foot rule is the most equitable method of distributing the cost among the properties benefited, then the resolution shall direct that the cost to be assessed against each lot or parcel of land shall be determined by dividing the entire assessable cost of the project by the total number of front feet of real property abutting upon the utility easement, street, railroad or public or private right-of-way in which the project is constructed, and multiplying the quotient by the total number of front feet in any particular lot or parcel of land fronting on such utility easement, street, railroad or public or private right-of-way in which the project is constructed. The result thereof shall be assessed by the mayor and board of aldermen as the amount of the levy against each lot or parcel of land for the owner's part of the cost of the entire improvement to be paid through special assessments.

SECTION 10. If the mayor and board of aldermen shall determine that the area rule is the most equitable method of distributing the cost among the properties benefited, then the resolution shall direct that the cost to be assessed against each lot or parcel of land shall be determined by dividing the entire assessable cost of the project by the total number of acres or square feet in the area being benefited and multiplying the quotient by the total number of acres or square feet in any particular lot or parcel of land being benefited. The result thereof shall be assessed by the mayor and board of aldermen as the amount of the levy against each lot or parcel of land for the owner's part of the cost of the entire improvement to be paid through special assessments.

SECTION 11. The mayor and board of aldermen shall determine the part or the amount of the cost to be assessed against each lot or parcel of land involved in "in lieu" agreements in general accord with the front foot rule or area rule as provided in Section 9 and Section 10 of this act.

SECTION 12. If a majority of the owners of more than forty percent (40%) of the front footage of the property to be assessed under the front foot rule, or if a majority of the owners of more than forty percent (40%) of the area of the property to be assessed under the area rule described herein, shall file a written protest objecting to such assessments as provided in this act and in Section 21-41-7, Mississippi Code of 1972, then the improvement shall not be made.

If the majority of the owners of more than thirty percent (30%) of the front footage of the property to be assessed under the front foot rule actually residing on the property owned by them, or if a majority of the owners of more than thirty percent (30%) of the area of the property to be assessed under the area rule described herein actually residing on the property owned by them, shall file a written protest objecting to such assessments as provided in this act and in Section 21-41-7, Mississippi Code of 1972, then the improvements shall not be made.

SECTION 13. Before issuing any bonds under the provisions of this act, the town shall, in its resolution of intent to proceed, spread upon its minutes, declare its intention to issue such bonds for the purposes authorized by this act and shall state in such resolution the amount of bonds proposed to be issued and shall likewise fix in such resolution the date upon which the town proposes to direct the issuance of such bonds.

Notice of intent to issue bonds, elections if required, and other action involved in issuance of bonds shall be in accordance with Sections 21-33-307, 21-33-309 and 21-33-311, Mississippi Code of 1972.

SECTION 14. The bonds authorized by this act, and the income therefrom, shall be exempt from all taxation in the State of Mississippi.

SECTION 15. If any clause, sentence, paragraph or part of this act shall for any reason be adjudged by any court of competent jurisdiction to be unconstitutional or invalid, such judgment shall not affect, impair or invalidate the remainder of this act, but shall be confined in its operation to the clause, sentence, paragraph or part thereof directly involved in the controversy in which judgment shall have been rendered.

SECTION 16. This act, including the provisions of Section 21-41-1 through 21-41-53, Mississippi Code of 1972, not in direct conflict herewith, shall be deemed to be full and complete authority for the issuance of bonds, and shall be construed as an additional and alternative method therefor, and all powers necessary to be exercised in order to carry out the provisions of this act are hereby conferred.

SECTION 17. This act shall take effect and be in force from and after its passage.