Close Menu
Invest Intellect
    Facebook X (Twitter) Instagram
    Invest Intellect
    Facebook X (Twitter) Instagram Pinterest
    • Home
    • Commodities
    • Cryptocurrency
    • Fintech
    • Investments
    • Precious Metal
    • Property
    • Stock Market
    Invest Intellect
    Home»Investments»Oklahoma measure would allow bond-issuing infrastructure districts
    Investments

    Oklahoma measure would allow bond-issuing infrastructure districts

    October 22, 20246 Mins Read


    Oklahoma would open the door to the creation of bond-issuing public infrastructure districts if voters approve a constitutional amendment on the Nov. 5 statewide ballot.

    State question 833 would allow property owners to petition their municipality to create a PID as a way to finance roads, sidewalks, parks, and water and sewer services through the issuance of bonds backed by a property tax assessment applied only within the district.

    It was placed on the ballot with the Republican-controlled legislature’s passage of Senate Joint Resolution 16 in a 38-7 Senate vote in March and a 66-27 House vote in April. A simple majority vote is required for passage in the election.

    Oklahoma State Sen. John Haste
    “This will help a developer or developers looking to add housing or it could be for business as well,” said Oklahoma state Sen. John Haste.

    Oklahoma Senate

    Sen. John Haste, R-Broken Arrow, who sponsored the measure, said the districts would be “an additional tool in the tool belt” to spur housing development and support the state’s growth.

    “It allows a city not to have to utilize their own bonding capacity,” he told The Bond Buyer. “This will help a developer or developers looking to add housing or it could be for business as well for the infrastructure to support a development because sometimes the city may not have the bonding capacity or the ability to do some of the infrastructure needs and things like roads or sidewalks, wastewater, that kind of stuff within a particular development.”

    Oklahoma ranked 12th among states for net domestic migration in 2023 with a net increase equivalent to 1.9% of its population, according to a Kansas City Federal Reserve report.

    In a Facebook video post against the ballot measure, Democratic State Rep. Andy Fugate offered a scenario in which a developer who owns property could be the only entity pursuing a PID and bond financing for public infrastructure that he said was intentionally left undefined by amendment backers.

    “Since only one person owns the land, that person can petition the city to make that square mile of public infrastructure district,” he said. “That person then sells bonds to build public infrastructure like a park, tennis courts, a swimming pool, and a golf course, all conveniently inside that gated community. The new homeowners will have awesome infrastructure that’s public to them.”

    To ensure their higher property tax bills as a result of the infrastructure improvements don’t go even higher, homeowners would vote against funding requests like school bonds, according to Fugate. 

    “This state question is an easy grift that profits a handful at the expense of the rest of us,” said Fugate, who called SJR 16 the “triple crown of bad policy” during House debate on the measure.

    Haste said 100% of the property owners would have to sign a petition to create a PID, which would then need city council approval for the district and its governing documents. The property tax assessment would be capped at 10 mills ($10 for every $1,000 of a property’s assessed value) and the amount of bonds cannot exceed 10% of the district’s future property value, he said, adding that prospective property owners would have to be advised of the PID’s existence. If the amendment passes, SJR 16 authorizes the legislature to enact laws to implement PIDs.

    “That’s why part of the guardrails we already have in place are there based on what other states have done,” he said. “But also additional things that are necessary will be run in legislation next year.”

    Similar districts have proliferated in states experiencing population increases and housing shortages as a way to have developments pay for their own infrastructure needs through bond sales that may or may not be rated by a major rating agency. 

    Of the 2,423 metropolitan districts in Colorado, Moody’s Ratings rates 69, which have more than $1.7 billion in combined outstanding debt. The ratings range from A2 to Ba3 with the majority rated A3 or Baa1. 

    Metropolitan districts, which are subject to state and local government regulatory oversight, were launched in some cases with “eligible voters” authorizing billions of dollars of bonds backed by property taxes. In the early stages of a project, those voters typically include only the developer.  

    A 2023 Colorado law requires district service plans to list maximum property tax levies and debt issuance and limits the interest rate on bond issues purchased by district developers.

    Coloradans for Metro District Reform unsuccessfully pushed for a measure last year that would have prevented developers from buying bonds issued by districts they created. 

    Some of the Colorado districts have faltered financially or faced an inadvertent threat from the ballot.

    There have been 52 metro districts that have defaulted, according to Municipal Market Analytics’ database, which was created in 2009, with 11 currently active defaults. 

    A proposed constitutional amendment that would have imposed a 4% cap on statewide property tax revenue growth sparked concerns over its implementation and fears it would raise borrowing costs and lead to litigation, particularly against metro districts.

    Under a deal with amendment backers that led to the initiative’s removal from the Nov. 5 ballot, the Democratic-controlled legislature passed House Bill 1001 during an August special session called by Gov. Jared Polis. The legislation, which Polis signed into law Sept. 4, expands on the enactment earlier this year of $1.3 billion in tax relief through lower assessments rates and a cap on property tax revenue growth for 2024 and 2025.

    In Texas, districts that finance water-related projects and in some cases other infrastructure like roads and parks, issued nearly $4.15 billion of tax-supported and $2.3 billion of revenue-supported debt in fiscal 2023, according to the state’s Bond Review Board. Outstanding debt for municipal utility districts and other districts totaled $45.42 billion.

    In an April report on Texas MUDs, Moody’s said operating fund reserves were strong, while state oversight keeps debt burdens in line with tax base growth. Its ratings for 502 MUDs range from Aa2 to Ba1. 

    “Median debt service as a percentage of expenditures declined for lower-rated MUDs as newly established districts had significant tax base and revenue growth from new development,” the report said. “The positive trajectory of the sector is evidenced by the 99 upgraded districts in 2023.”

    The state has had occasional eye-popping initial voter-approved bond authorizations. A single vote by a property owner in Texas in the November 2023 election authorized the Legacy Municipal Management District in Webb County to issue $2.7 billion of bonds for water, wastewater, and drainage system facilities, nearly $3.8 billion of bonds for roads, $9.7 billion of debt refunding, and the ability to levy taxes to pay off the debt.  

    The bonds will finance infrastructure for 13,000 acres of land owned by a family in the Laredo area that is targeted for residential, commercial, retail, and industrial use. 

    Lund Farm MUD has more than $1.1 billion of bonds on the Nov. 5 ballot to fund infrastructure for a mixed-use residential development approved by the Elgin City Council last year.

    In February, Rockwall County reportedly sued a MUD for holding an “invalid” single-voter election in November 2022 that authorized about $833 million of bonds. 



    Source link

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

    Related Posts

    Former Barcelona star and World Cup winner ‘returns to former club to announce retirement at just 31’

    Investments

    Terrified Cattle Dog Puppy Who Was Left In Dumpster Bonds Immediately With New Kitten Sister

    Investments

    Joey Aguilar built bonds Nico Iamaleava couldn’t at Tennessee: Report

    Investments

    Finance expert warns of pension mistakes to fix now to protect your money for retirement

    Investments

    I visited the little UK seaside village that’s basically a giant retirement home

    Investments

    Common Tax Mistakes You May Be Making With Your Investments

    Investments
    Leave A Reply Cancel Reply

    Top Picks
    Commodities

    Where’s the Beef? How Commodity Exports and Infrastructure Contracts are Driving the New China-Latin America and the Caribbean Economic Relationship

    Investments

    Deals of Over $100 Million

    Commodities

    Metal stocks drive market recovery as Sensex gains 139 points

    Editors Picks

    Why the Smoky Mountains Are a Top Choice for Affordable Cabin Investments

    February 10, 2025

    Chesapeake Utilities (CPK) Expected to Announce Earnings on Wednesday

    February 18, 2025

    RAFINOR estimates 150 kilogram investment gold sales through the MAGNOR store network, its main distributor, in 2025

    January 22, 2025

    la fin de la frustration du Paris Saint-Germain version Qatar?

    May 29, 2025
    What's Hot

    gradual digital rouble rollout to begin by mid-2026

    June 12, 2025

    House Of Investments Inc affiche un résultat net attribuable de 1,38 milliard de pesos pour l’exercice

    May 2, 2025

    Immortal Bird – Sin Querencia Review

    October 18, 2024
    Our Picks

    Exclusion from Trump's tariffs reduces premium of New York precious metals over London – Reuters

    April 3, 2025

    Envisant Selects Q2 to Migrate Prepaid Card Portfolio – FF News

    October 25, 2024

    Lucarne Opposée – Gold Cup 2025 : les gros bras sortent les crocs

    June 18, 2025
    Weekly Top

    Royal Agricultural University opens its doors for 180th birthday

    September 12, 2025

    Wrexham: Cymau property on the market for £750,000

    September 12, 2025

    3 “Goldilocks” Dividend Stocks Ready To Skyrocket

    September 12, 2025
    Editor's Pick

    Le groupe de heavy metal Black Sabbath célèbre son dernier concert à Birmingham – rts.ch

    July 6, 2025

    Healthcare Fintech Company Raises $232 Million (Series B)

    August 17, 2024

    Stablecoin supply to exceed $1.6T, Citigroup forecasts

    April 25, 2025
    © 2025 Invest Intellect
    • Contact us
    • Privacy Policy
    • Terms and Conditions

    Type above and press Enter to search. Press Esc to cancel.