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Resolution would let Chapter 100 properties factor into school bonding valuations
Summary
Representative Bill Faulkner introduced HJR 171 to allow property owned under Chapter 100 bond arrangements to be included in school districts' valuation for bonding capacity and proposed an amendment to extend the treatment to other government entities; a committee member cautioned it could extend credit without tax revenue to pay bonds.
Representative Bill Faulkner (10th District) said House Joint Resolution 171 would permit properties held under Chapter 100 bond programs to be included in the valuation that counts toward school districts' bonding capacity. "So it allows, school districts to be able to, maybe, borrow more money against their bonding," Faulkner said.
Faulkner said an amendment would expand the change beyond municipalities to other government entities that sometimes use Chapter 100 arrangements — such as port authorities — so those properties would also count in bonding valuations even though they are not taxed while under municipal ownership.
A committee member raised a concern that the proposal would effectively extend a school district's credit without giving the district the tax receipts from that property to help pay the bond. Faulkner responded that Chapter 100 agreements are typically temporary (often 10 years) and the property returns to the tax rolls; he also said many projects include upfront payments to the district.
The committee heard the explanation, asked questions and concluded the hearing on HJR 171 with no testimony from outside proponents or opponents recorded at this meeting.
