Honorable Royce West, Chair, Senate Committee on Intergovernmental Relations
John S. O'Brien, Director, Legislative Budget Board
SB2124 by West (Relating to public improvement districts designated by a county or municipality.), As Introduced
The bill would amend the Local Government Code to add options related to how a public improvement district could require payments on assessments and what interest rates the district may require. The bill would allow, rather than require as stated in current statute, a public improvement district to create a separate fund in the municipal or county treasury for each district.
The bill would also add requirements related to how costs for improvement projects are to be paid from a special assessment that is to be paid in installments and a cost payable by the municipality or county as a whole but not payable from available general funds or other available general improvement funds. Provisions of the bill would establish how to calculate the net effective interest rate on money owed or paid.
Under the proposed change in statute, a governing body of a municipality or county would be authorized to enter into an agreement with a corporation created by the municipality or county for payment of amounts pledged to the corporation to secure indebtedness issued by the corporation to finance an improvement project.