An Act To Authorize A General Fund Bond Issue To Fund Wastewater Treatment Facility Planning And Construction Of Infrastructure Projects

132nd Legislature (2025-2026) Introduced by Stacy Brenner

Authorizes a $50M General Fund bond to finance wastewater treatment planning and construction, totaling about $63.75M, to be approved by voters in November 2025.

Died in Possession of the Committee Upon Conclusion of the 132nd Legislature and PLACED IN THE LEGISLATIVE FILES (DEAD).

#bondissues #construction #sewerdistricts

Overview

LD 25 is an Act titled “An Act To Authorize A General Fund Bond Issue To Fund Wastewater Treatment Facility Planning And Construction Of Infrastructure Projects.” The bill would authorize a General Fund bond issue to finance planning and construction related to wastewater treatment facilities and associated infrastructure. It was introduced on January 8, 2025, sponsored by Sen. Brenner of Cumberland, referred to the Appropriations and Financial Affairs Committee, and is currently carried over to the next session.

Purpose and Scope

Primary purpose: To provide bonding authority from the General Fund to support planning and construction of wastewater treatment facilities and related infrastructure projects.

Intended beneficiaries: Municipalities and sewer districts undertaking wastewater treatment projects; indirect beneficiaries include ratepayers and the broader public who rely on wastewater infrastructure.

Key Provisions

Bond authorization: $50,000,000 principal amount.

Financing terms: Estimated interest at 5.0%; approximate total debt service of $63,750,000 (principal plus interest).

Referendum: The bond issuance would be presented to voters in a statewide general election (November 2025) for approval via a ballot question.

Bond type: General Fund bond issue, described as non-taxable.

Referendum costs: The bill’s fiscal note notes potential additional costs if a second ballot is required; baseline referendum cost is estimated at $0.34 million if a second ballot is needed.

Administration: The fiscal note indicates the Secretary of State has budgeted funds to handle an average-length ballot for the November general election.

Fiscal Impact (as indicated in the Fiscal Note)

General Fund impact: Potential cost increase in the current biennium due to debt service.

Principal: $50,000,000; Interest: $13,750,000; Total estimated cost: $63,750,000.

Election costs: If the ballot process requires more than one ballot, an additional appropriation of approximately $340,953 may be needed.

Timeline and Procedural Notes

Election timing: Ballot question anticipated for November 2025.

Status: Carry Over Approved, meaning the bill will carry into the next session(s) and may be reconsidered in the 132nd Legislature.

Legislative posture: The bill was received and referred to the Appropriations and Financial Affairs Committee; subsequent carryovers indicate ongoing consideration without final action in the current session.

Affected Parties and Impacts

State: General Fund debt and future debt service obligations.

Local governments: Municipalities and sewer districts that would undertake wastewater planning and construction projects funded by the bonds.

Taxpayers and ratepayers: Potential impact through future debt service and related costs funded by the General Fund.

Ballot process: Voters in November 2025 would determine approval of the bonding plan.

Bill