Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Municipal Finance topic
No spam. Unsubscribe anytime.
Committee releases charter amendment allowing Laurel to exclude certain project loans from borrowing calculations
Summary
The committee released House Bill 336, which amends the town charter of Laurel to exclude forgiven project loans from counted 'borrowed money' for the purpose of the town's borrowing limits; sponsors said the change reflects common practice used by small towns for water and treatment projects.
The House Administration Committee voted to release House Bill 336, a charter amendment for the town of Laurel that clarifies how certain project loans — structured as loans that will be repaid or forgiven upon completion — are treated for municipal borrowing calculations.
Representative Dukes, who presented the bill, explained the change is common among small towns undertaking infrastructure projects such as water towers or treatment plant expansions and would make clear that those temporarily recorded loans do not count against the municipality’s borrowing limit when the funds will be repaid or effectively treated as grants after project completion.
There was no in-person public comment on the measure. Committee members moved to release the bill, and a roll-call vote followed; the clerk announced the motion carried and HB 336 was reported out of committee.
What happens next: HB 336 will be posted as reported out and proceed through the legislative calendar for further consideration and any required local approvals.
