Highway and Street Revenue Bond Authority

Miss. Code Ann. tit. 65, ch. 13
in effect

Miss. Code Ann. § 65-13-3 Purpose.

The purpose of this chapter is to provide for the construction, operation, and maintenance of highways, streets, culverts, and bridges in order to furnish access from interstate, primary, or secondary highways to reservoirs, parks, residential or industrial areas, and similar facilities and to provide a method for the financing thereof.

Miss. Code Ann. § 65-13-5 Legislative determination.

It is hereby declared, as a matter of legislative determination, that the construction, operation, and maintenance of highways and streets to serve areas of high traffic density will promote the economic development of the state.

Miss. Code Ann. § 65-13-7 Definitions.

Whenever used in this chapter, unless a different meaning clearly appears in the context, the following terms, whether used in the singular or plural, shall be given the following respective definitions: “Highway and street revenue bond authority” or “authority” means an instrumentality through which certain municipalities intend to accomplish the purposes of this chapter. “Trustee” shall refer to the board of trustees of the highway and street revenue bond authority created by this chapter. “Governing body” shall refer to the board of supervisors of a county, mayor and board of aldermen of towns and cities, directors of districts, commissioners and other governing bodies of any municipal government or agency located in the State of Mississippi. “Highways and streets” shall be deemed to include roadways, pavements, culverts, bridges, driveways, and also all property, rights, easements, and franchises relating thereto and deemed necessary or convenient for the operation thereof. The term “cost” shall include the cost of all construction, maintenance, and operation of facilities constructed; and shall embrace the cost of all land, property, rights, easements, and franchises acquired, which are deemed necessary for such construction; financing charges; interest prior to and during construction and for eighteen months after acceptance of the completed work by the highway and street revenue bond authority; cost of traffic estimates, engineering and legal expenses, plans, specifications, surveys, estimates of cost and of revenues, other expenses necessary or incident to determining the feasibility or practicability of the enterprise; administrative expense; and such other expenses as may be necessary or incident to the financing herein authorized and the construction and the placing of the completed facility in operation. “Develop” shall refer to the initiation, creation, studying, planning, purchasing, financing, constructing, building, surveying, platting, and otherwise bringing into being facilities planned and designed to serve the purposes of this chapter. “Project” shall mean any section, part, phase, or other subdivision of the total work involved in the construction of highways and streets as outlined in this chapter. “Sealed bid procedure” shall refer to the procedure designated under Section 31-19-25 Mississippi Code of 1972, wherein the governing authority advertises for the sale of bonds, and as supplemented herein. “Revenues” shall mean all charges, rentals, tolls, rates, gifts, grants, moneys, volunteer assessments, and all other funds coming into the possession of the authority by virtue of the provisions of this chapter, except the proceeds from the sale of bonds issued hereunder. “Net revenues” shall mean the revenues after payment of costs and expenses of operation and maintenance of the project and related facilities.

Miss. Code Ann. § 65-13-9 Certain governmental bodies empowered to create or join authority.

Any county which embraces more than five miles of the shoreline of any existing reservoir, the construction of which was financed by revenue bonds, and any town, city, or supervisors district within such county, and any agency of the state or state department is hereby authorized and empowered separately or jointly to create or join a highway and street revenue bond authority as outlined in Section 65-13-11.

Miss. Code Ann. § 65-13-11 Petition for creation of authority.

A petition for the creation of a highway and street revenue bond authority may be submitted to the board of supervisors of the county in which the project or projects authorized by this chapter are to be developed. Such petition shall be signed by not less than twenty qualified electors residing within the county of the board to which the petition is submitted. Such petition shall include (1) a statement of the necessity for the service or services to be supplied by the proposed highway and street revenue bond authority, (2) the services to be provided by the authority, and (3) the limits of the facility to be constructed by the authority. Such petition shall be signed in person by the petitioners, with their respective residence addresses, and shall be accompanied by a sworn statement of the person or persons circulating the petition, who shall state under oath that he or they witnessed the signature of each petitioner, that each signature is the signature of the person it purports to be, and that, to the best of his or their knowledge, each petitioner was at the time of signing a resident of the county.

Miss. Code Ann. § 65-13-13 Notice of public hearing on petition.

Upon the filing of a petition with the board of supervisors as outlined above, it shall be the duty of said board to fix a time and place for a public hearing upon the question of the public convenience and necessity for the creation of the proposed authority. The date fixed for such hearing shall be not more than thirty days after the filing of the petition, and the date of the hearing, the place at which it shall be held, and the purpose of the hearing shall be set forth in a notice to be signed by the clerk of the board of said county. Said notice shall be published in a newspaper having general circulation within such county once a week for at least three consecutive weeks prior to the date of such hearing. The first such publication shall be made not less than twenty-one days prior to the date of such hearing, and the last such publication shall be made not more than seven days prior to the date of such hearing.

Miss. Code Ann. § 65-13-15 Finding of public convenience and necessity.

If the board of supervisors at the hearing provided in Section 65-13-13 finds that (1) the public convenience and necessity require the creation of the authority, and (2) the creation of the authority is sound and desirable, the board of supervisors shall adopt a resolution making the aforesaid findings and declaring its intention to create the authority in its respective county on the specified date.

Miss. Code Ann. § 65-13-17 Publication of resolution declaring intent to create authority.

A certified copy of the resolution so adopted shall be published in a newspaper having a general circulation within the county once a week for at least three consecutive weeks prior to the date specified in such resolution as the date upon which said board intends to create such authority. The first such publication shall be made not less than twenty-one days prior to the date thus specified, and the last such publication shall be made not more than seven days prior to such date.

Miss. Code Ann. § 65-13-19 Protest petition and election.

If ten percent (10%) of the qualified electors residing in the supervisors district, or supervisors districts if the facility to be developed is located in more than one supervisors district, file a written petition with said boards of supervisors on or before the date specified aforesaid, protesting against the creation of the authority, the board shall call an election on the question of the creation of the authority. Such election shall be held and conducted by the election commissioners of the county as nearly as may be in accordance with the general laws governing elections. Such election commissioners shall determine which of the qualified electors of such county reside within said supervisors district, or districts, and only such qualified electors as reside within said supervisors district, or districts, shall be entitled to vote in such election. Notice of such election, setting forth the time, place or places, and purpose of such election shall be published by the clerk of the board of supervisors; and such notice shall be published for the time and manner provided for the publication of the aforesaid resolution of intention. The ballots to be prepared and used at said election shall be in substantially the following form: For creation of the highway and street revenue bond authority. . . . .( ) Against creation of the highway and street revenue bond authority. . . . .( ) and voters shall vote by placing a cross mark (X) or a check mark (Π) opposite their choice. If no petition requiring an election be filed or if a majority of those voting at an election hereunder votes in favor of the creation of the authority, the board of supervisors shall adopt a resolution creating the authority as described in the aforesaid resolution of intention.

Miss. Code Ann. § 65-13-21 Costs.

All costs incident to the publication of the aforesaid notices and all other costs incident to the public hearing and election hereunder shall be borne by the parties filing the petition; and the board or boards of supervisors, in its or their discretion, may require the execution by the parties filing the petition of a cost bond in an amount and with good sureties to guarantee the payment of such costs. However, the board of supervisors may, in its discretion, pay the costs of the hearing and election, or such portion as it deems proper, if it considers the proposal to be of sufficient public interest.

Miss. Code Ann. § 65-13-23 Appeals to circuit court.

Any party having an interest in the subject matter and aggrieved or prejudiced by the findings and adjudication of the board of supervisors may appeal to the circuit court of his or her respective county in the manner provided by law for appeals from orders of the board of supervisors; if no such appeal be taken within a period of fifteen days from and after the date of the adoption of the resolution creating the authority, the creation of the highway and street revenue bond authority shall be final and conclusive and shall not thereafter be subject to attack in any court.

Miss. Code Ann. § 65-13-25 Board of trustees.

All powers of the highway and street revenue bond authority shall be exercised by a board of trustees, to be composed as follows: Two members of the board of trustees shall be appointed by the board of supervisors. These two members shall be qualified electors who reside within the supervisors district in which the facility is located. One member of the board of trustees shall be appointed by the board of supervisors and shall be a qualified elector not a resident of the supervisors district in which is located the proposed facility. Any municipality joining the authority, either during organization or afterwards, shall appoint two members of the board of trustees who shall be qualified electors in the municipality appointing them. One of the members of the board of trustees appointed under (a) above and one of the members of the board of trustees appointed under (c) above shall be appointed for an initial term of five years, but all other appointments shall be for a term of four years, or until appropriate successors in office have been appointed and have accepted appointment. At any time the membership of a board of trustees composed as outlined herein is of an equal number, the trustees themselves shall select, from any part of the county, one member at large who shall have all the rights and privileges as any other member and who shall serve for a period of four years. Members of the board of trustees of the authority may succeed themselves. No member shall be appointed by the board of supervisors who is not a qualified elector and bona fide resident of the county.

Miss. Code Ann. § 65-13-27 Oath of trustees.

Each member of the board of trustees shall take and subscribe to the general oath of office, required by Section 268 of the Constitution of the State of Mississippi, before the chancery clerk that he will faithfully discharge the duties of the office, which oath shall be filed with the said clerk and by him preserved.

Miss. Code Ann. § 65-13-29 Compensation of trustees.

The trustees shall each receive not more than Twenty Dollars ($20.00) per diem, and Ten Cents (10¢) per mile for distance traveled while actually performing the business of the authority. The compensation herein authorized shall apply for no more than fourteen days per member during any calendar year.

Miss. Code Ann. § 65-13-31 Powers of the authority.

The highway and street revenue bond authority, through its trustees, is hereby empowered: To develop one or more projects under the authority provided by this chapter. To construct and maintain highways and streets, including roadways, drainageways, bases, pavements, culverts, bridges, driveways, turnouts, ramps, overpasses, underpasses, intersections, and all other facilities necessary to provide for safe and convenient use by automotive and truck traffic. To acquire and develop land or any interest in land or property; acquire, construct, improve, install, reconstruct, cause to be constructed, extend, expand, maintain, use, operate all facilities of any kind necessary or convenient for the purposes of this chapter. To make or cause to be made or to cooperate in making engineering surveys, feasibility studies, and cost-benefit estimates relating to the works contemplated by this chapter. To employ engineers, attorneys, and all agents and employees necessary to the exercising of the powers, rights, privileges, or functions conferred upon the authority by this chapter, and to properly finance, construct, operate, and maintain the project and the services it renders, and to pay reasonable compensation for such services. To acquire by condemnation easements for traffic thoroughfares or utility rights of way, subject to the specific recommendation and approval of the board of supervisors; but for no other purpose shall the right of condemnation be allowed. To apply for and accept government grants and loans, whether federal, state, or local, when such are available; to borrow from other federal, state and municipal agencies and from private persons or groups, including corporations. To make contracts and to execute instruments necessary to the exercise of the powers, rights, privileges, and functions conferred upon the authority by this chapter. To enter into contracts and agreements with any federal agencies, public agencies, or political subdivisions of any kind, including municipalities, corporations, districts, or others for any financing, construction, operation, or maintenance requirements. To fix and to revise from time to time tolls and other charges for transit over, or use of, the facility, and to charge and collect same; and to contract with any person, partnership, corporation, or association desiring to use its properties for any purpose to fix the terms, conditions, rates, and charges for such use. Such tolls shall be so fixed and adjusted, in respect of the aggregate of tolls from the project for which a single issue of bonds is issued, as to provide a fund sufficient with other revenues of the project, if any, to pay (1) the cost of maintaining, repairing, operating such project and collecting tolls, and (2) the bonds and the interest thereon as the same become due. Such tolls shall not be subject to supervision or regulation by any state commission, board, bureau or agency, except such bureau or agency that might participate in the financing of the cost of any such project. To designate the locations, and establish, limit, and control such points of ingress to and egress from each project as may be necessary or desirable in the judgment of the authority to insure the proper operation and maintenance of such project, and to prohibit entrance to such project from any point or points not so designated. To construct highway and railroad crossings at grade or by means of grade separation structures. To sue and be sued in its corporate name. To adopt, use, and alter a corporate seal. To make bylaws for the management and regulation of its affairs. To employ a general manager, who shall, at the discretion of the board of trustees, have the power to employ and discharge employees.

Miss. Code Ann. § 65-13-33 Authority to issue bonds.

The highway and street revenue bond authority, through its board of trustees and subject to the approval of the board of supervisors and the governing body of any other municipality joining the authority, either at the time of its creation or afterward, is further empowered to finance all cost in connection with the work authorized in this chapter by the issuance of revenue bonds. Such bonds shall be issued at such times and in such amounts as shall be provided by resolution of the board of trustees and approved by the board of supervisors of the county and the governing body of other municipalities, agencies or departments involved in the payment of cost. The board of trustees is further authorized to make such contracts, within the authority of this chapter, in the issuance of bonds as may be necessary to insure the marketability thereof. All bonds sold to any person or persons other than agencies of the county, state, or federal government will be sold by the sealed bid procedure, and the bonds will be sold and delivered to the parties proposing the lowest overall average interest cost.

Miss. Code Ann. § 65-13-35 Security for bonds.

All such bonds issued by the authority shall be secured solely by pledge of the net revenues which may now or hereafter come to the authority. Such bonds shall not constitute general obligations of the State of Mississippi or of the county supervisors district or municipalities comprising the authority, and such bonds shall not be secured by a pledge of the full faith, credit, and resources of said state, county, district, or municipality.

Miss. Code Ann. § 65-13-37 General provisions for bonds.

The bonds of the authority shall not be included in computing any present or future debt limit of the county, supervisors district, municipality, agency, or department under any present or future law. All such bonds provided by this chapter shall be negotiable instruments within the meaning of the Uniform Commercial Code, shall be lithographed or engraved and printed in two (2) or more colors to prevent counterfeiting. They shall be in denominations of not less than One Thousand Dollars ($1,000.00), may be registered as issued, and shall be numbered as determined by the authority. Each such bond shall specify on its face the purpose for which it was issued and the total amount authorized to be issued, and the interest to accrue thereon may be evidenced by proper coupons to be attached thereto. Such bonds shall bear interest at such rate or rates as may be determined by the sale of such bonds, provided that the bonds of any issue shall not bear a greater overall maximum interest rate to maturity than that allowed in Section 75-17-103. They shall mature annually in such amounts and at such times as shall be provided by the resolution of the board of trustees. No bond shall have a longer maturity than forty (40) years from date of issuance, and the first maturity date thereof shall be not more than five (5) years from the date of such bonds. The denomination, form, and place or places of payment of such bonds shall be fixed in the resolution of the board of trustees of the authority. Such bonds shall be signed by the president and secretary of such board, with the seal of the authority affixed thereto, but the coupons, if any, may bear only the facsimile signatures of such president and secretary. All interest accruing on such bonds so issued shall be payable semiannually, except that the first interest coupon attached to any such bond may be for any period not exceeding one (1) year. Only one (1) coupon may be attached to a bond for any one (1) specified period of time. No interest coupon can vary more than twenty-five percent (25%) in value from any other coupon on the same bond or another coupon in the same issue. Such bonds may be called in, paid, and redeemed in inverse numerical order on any interest date prior to maturity, upon not less than thirty (30) days’ notice to the paying agent or agents designated in such bonds, and at such premium as may be designated in such bonds. However, in no case shall any premiums exceed six percent (6%) of the face value of such bonds. All such bonds shall contain in substance a statement to the effect that they are secured solely by a pledge of the net revenues of the authority and/or the avails of voluntary assessments of adjacent landowners, and that they do not constitute general obligations of any political subdivision of the State of Mississippi except the authority created by this chapter, and are not secured by a pledge of the full faith, credit, and resources of said state or of such county or counties. All such bonds as provided for herein shall be sold under the sealed bid procedure at public sale as now provided by law except as otherwise provided herein. No such sale shall be at a price so low as to require the payment of interest on money received therefor at more than a greater overall maximum interest rate to maturity than that allowed in Section 75-17-103. This chapter shall be full and complete authority for the issuance of the bonds provided for herein, and no restriction or limitation otherwise prescribed by law shall apply herein. Notwithstanding the foregoing provisions of this section, bonds referred to hereinabove may be issued pursuant to the supplemental powers and authorizations conferred by the provisions of the Registered Bond Act, being Sections 31-21-1 through 31-21-7.

Miss. Code Ann. § 65-13-39 Validation of bonds.

All bonds issued pursuant to this chapter shall be validated as now provided by law by Sections 31-13-1 through 31-13-11, Mississippi Code of 1972. The services of the state’s bond attorney may be employed in the preparation of such bond resolutions, forms, or proceedings as may be necessary, for which he shall be paid a reasonable fee. Such validation proceedings shall be instituted in the chancery court of the county in which the projects proposed by this chapter are located, but notice of such validation proceedings shall be published at least two times in a newspaper of general circulation and published in any county involved, the first publication of which in each case shall be made at least ten days preceding the date set for the validation.

Miss. Code Ann. § 65-13-41 Bonds as legal investments for public funds.

All bonds issued by the authority shall be and are hereby declared to be legal and authorized investments for public funds of counties, cities, towns, school districts, banks, savings banks, trust companies, building and loan associations, savings and loan associations, insurance companies, and for funds of the Mississippi Public Employees’ Retirement System. Such bonds shall be eligible to secure the deposit of any and all public funds of cities, towns, villages, counties, school districts, or other political corporations or subdivisions of the State of Mississippi; and such bonds shall be lawful and sufficient security for said deposits to the extent of their value, when accompanied by all unmatured coupons appurtenant thereto.

Miss. Code Ann. § 65-13-43 Levy of assessments in lieu of tolls.

The board of trustees may, in lieu of charging and collecting tolls or in combination with the charging and collection of tolls, levy or assess adjacent property owners or the different supervisors districts, municipalities, agencies, departments, or other instrumentalities assisting in the development of the works authorized herein with an amount of money which, together with other revenues, will provide sufficient funds to carry out the purpose of this chapter. All political subdivisions of this state are hereby authorized and empowered to make such agreements with the board of trustees as are necessary to carry out the purpose of this section. All assessments shall be voluntary and at the discretion of the party or governmental subdivision upon which the assessment is to be levied. All procedures, regulations, commitments, etc., shall be outlined in detail on a resolution by the board of trustees of the authority prior to acceptance by any political subdivision of this state and agencies, commissions, departments, and other instrumentalities thereof.

Miss. Code Ann. § 65-13-45 Authority may act jointly with other governmental bodies.

The authority, through its board of trustees, shall have authority to act jointly with political subdivisions of the state, agencies, commissions, and instrumentalities thereof, with other states, with municipalities, and with the federal government and other agencies thereof in the performance of the purposes and services authorized in this chapter, upon such terms as may be agreed upon by the trustees.

Miss. Code Ann. § 65-13-47 Bond interest tax exempt.

The accomplishment of the purposes stated in this chapter being for the benefit of the people of this state and for the improvement of their properties and industries, the authority in carrying out the purposes of this chapter will be performing an essential public function, and the interest on the bonds issued hereunder shall at all times be free from taxation within this state.

Miss. Code Ann. § 65-13-49 Construction contracts.

All construction contracts by the authority where the amount of the contract shall exceed Two Thousand Five Hundred Dollars ($2,500.00) shall be made upon at least three (3) weeks’ public notice by advertisement in a newspaper of general circulation in the area of the project, which notice shall state the thing to be done and invite sealed proposals, to be filed with the secretary of the authority, to do the work. In all such cases, before the notice shall be published, the plans and specifications for the work shall be filed with the secretary of the authority, and there remain. The board of trustees shall award the contract to the lowest bidder, who will comply with the terms imposed by such trustees and enter into bond with sufficient sureties to be approved by the trustees in such penalty as shall be fixed by the trustees, but in no case to be less than the contract price, conditioned for the prompt, proper, and efficient performance of the contract.

Miss. Code Ann. § 65-13-51 Designation of depository.

The board of trustees shall designate one or more banks within the county to serve as depositories for the funds of the authority, and all funds of the authority shall be deposited in such depository bank or banks. Before designating a depository bank or banks, the trustees shall issue a notice stating the time and place the trustees will meet for such purpose and inviting the banks in the area to submit applications to be designated depositories. The term of service for depositories shall be prescribed by the trustees. Such notice shall be published one time in a newspaper or newspapers published in the area and specified by the trustees. At the time mentioned in the notice, the trustees shall consider the applications and the management and condition of the banks filing them, and shall designate as depositories the bank or banks which offer the most favorable terms and conditions for the handling of the funds of the authority and which the trustees find have proper management and are in condition to warrant handling of authority funds. Membership on the board of trustees of an officer or director of a bank shall not disqualify such bank from being designated as a depository. If no applications acceptable to the trustees are received by the time stated in the notice, the trustees shall designate some bank or banks within or without the authority upon such terms and conditions as they may find advantageous to the authority.

Miss. Code Ann. § 65-13-53 Cessation of tolls or assessments.

When the particular bonds issued for the projects to be constructed under this chapter and the interest thereon shall have been paid, or a sufficient amount shall have been provided for their payment and shall continue to be held for that purpose, and upon acceptance of the responsibility for operation and maintenance of the project by an agency of government legally authorized to do so, the authority shall cease to charge tolls or levy assessments for use of the project or projects, and thereafter the use of such projects shall be free.

Miss. Code Ann. § 65-13-55 Authority’s procedures to conform to constitutions.

Nothing in this chapter shall be construed to violate any provision of the federal or state constitutions, and all acts done under this chapter shall be done in such manner as will conform thereto, whether herein expressly provided or not. Where any procedure hereunder may be held by any court to be violative of either of such constitutions, the authority shall have the power by resolution to provide an alternative procedure conformable with such constitutions.

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