Committee advances discussion on extending road‑district bonds, clarifying advisory committees (LB1107)
Summary
LB1107 would limit when counties must form advisory committees and extend rural road improvement district bond maturities from 10 to 20 years; supporters said the change modernizes financing for rural road projects, while members sought details on liability and levy impacts.
Sen. Glenn Meyer told the Transportation and Telecommunications Committee that LB1107 modernizes the Rural Road Improvement District Act by requiring advisory committees only when special assessments are levied and by extending road‑district bond maturities from 10 to 20 years. Meyer said the change aligns local financing tools with prevailing loan terms and allows those who directly benefit from improvements to pay over a longer period.
John Cannon of the Nebraska Association of County Officials (NACO) and other county representatives supported the bill as local control that helps rural communities pay for paving or road improvements without obligating county general funds. Cannon noted front‑footage voting and existing safeguards that prevent a minority of landowners from imposing assessments without broad support.
Committee members asked for clarification on bond liability, whether the county or the road district carries default risk, and whether the change could be expanded to cover emergency repairs like those following the 2019 floods. Witnesses said the road improvement district would carry the bond and the county would collect special assessments on property tax statements, but outstanding technical questions about default liability and levy thresholds remain.
The proposal includes a drafting correction (AM1824) to update a page reference from “10” to “20.” No opponents appeared in person; the committee solicited additional input from bond counsel and county officials before taking further action.
