County Loans For Public Infrastructure Projects

The act authorizes the board of county commissioners of a county (board), in consultation with the county treasurer, to make loans to a governmental entity that is created by or located within the county subject to the following requirements:

• The board must adopt underwriting standards that require each proposed loan to be analyzed with respect to risks, market rates, and loan terms before making any loans;
• Each loan must be analyzed using the underwriting standards;
• The source of a loan must be legally available money that is not otherwise encumbered or obligated, and the amount loaned must not cause the total outstanding principal balance of all such loans made to exceed 8% of the amount of such money available at the time the loan is made;
• A loan must have a specified repayment term;
• A loan recipient must pay the county interest on the loan at an initial rate that is equal to or greater than the rate of return earned on all county financial investments;
• A loan recipient must use loan proceeds for the sole purpose of funding public infrastructure projects within the county; and
• The board must make the loan by entering into an intergovernmental agreement with the loan recipient that establishes loan terms and conditions. Before entering into such an intergovernmental agreement:
• The board must approve the public infrastructure project to be funded by the loan and the terms and conditions of the loan at a public board meeting; and
• The board or the loan recipient must pursue private sector options for funding the public infrastructure project to be funded by the loan and report regarding the options pursued at the board meeting at which the board approves the loan.
  (Note: This summary applies to this bill as enacted.)