WSP06696

• File Number: 8407.400
• Description: Platte River Basin - River Basin General Publications - Nebraska
• State: NE
• Basin: South Platte
• Water Division: 1
• Date: 1/1/1984
• Author: Nebraska Natural Res
• Title: Policy Issue Study on Supplemental Water Supplies
• Water Supply Pro - Doc Type: Report/Study

clear legislative and gubernatorial endorsement of
a sinking fund concept. Legislation for the sinking
fund should contain a provision that interest earned will
be returned to the fund. Not less than 5 million of the
10 million annual appropriation should be committed
to the sinking fund. For a project to be eligible for funds
in the sinking fund, it should be large enough to require
at least a five million dollar state commitment.
This new approach would allow us to continue to
meet the small project funding needs and also to
become prepared to meet intermediate monetary needs
including, hopefully, some required non-federal cost-
shares. The current Resources Development Fund
should serve as the vehicle for initial administration of
the new funds, but it is recognized that some changes
in eligibility criteria and operation of that fund eventually
could be needed. Also, provisions should be made to
hire additional staff to administer the additional ap-
propriations. The Resources Development Fund has
had money provided for only one staff person, with
other work donated by participating agencies. It is
unlikely that such an approach would work on an ex-
panded fund where even more donation of time by
several agencies would be required.

COMPONENT #3

Modify LB 545 so that the revenue bonds
authorized would be used as a source of funds for
Commission acquisition of state interests in
resources projects that will return revenue to the
state; e.g., M & I water, irrigation, etc. In November,
1982, the voters of the state approved an amendment
to the Nebraska Constitution authorizing the issuance
of state revenue bonds for water retention and im-
poundment structures. Since the bonds authorized are
of the revenue variety, they are to be repaid by state
revenues derived from use of the structures rather than
from general taxation. The stated purpose of LB 545,
a bill introduced in the 1983 session of the Legislature,
is to implement the constitutional amendment approv-
ed by the voters in November of 1982. However, the
Commission believes that LB 545 should be rewritten
so that revenue bonds may be utilized to compliment
the existing Resources Development Fund. The legisla-
tion governing that fund presently authorizes Commis-
sion acquisition of state interests in resources projects
with vendible water supplies. To date, no opportunities
for using such authority have been presented. While
such opportunities could be expected to also be rather
limited in the future, they will exist on occasion and the
ability to take advantage of them when they do should
be granted. State revenue bonds would appear to be
the most logical way to proceed in this regard.
Beyond the Commission acquisition authority
discussed above, little opportunity for use of state
revenue bonds presently exists for water project con-
struction. Natural Resources Districts and many other

IV

local resources. related political subdivisions have
revenue bonding authorities of their own and little or
no need for state revenue bonds. The authority granted
by the Constitutional amendment could not be fully im-
plemented unless a state agency were given the
necessary authorities to sponsor and construct water
projects. The Commission does not believe such an ex-
tension of state agency authority is presently needed;
however, it may deserve future consideration.

COMPONENT #4

Option #1: Propose an amendment to the
Nebraska Constitution to authorize the issuance
of general obligation bonds for:
(a) Water retention and impoundment struc-
tures (as revenue bonds are presently
authorized for);
(b) All eligible Resources Development Fund
projects; OR
(c) All water related projects, to include
waste treatment facilities and municipal
water distribution facilities.

In contrast with the revenue bonds discussed as part
of Component #3, the full faith and credit of the issu-
ing governmental entity is pledged to repayment of
general obligation bonds and they are normally repaid
from general tax revenues. They are used to generate
large amounts of money when needed for capitol in-
vestments, with repayment occurring over the term of
the bonds. General obligation bonds could be utilized
to raise funds for specific large practices or if desired
by the Legislature, for general funding of the Resources
Development Fund or other water resources project
financing mechanisms. Legislative approval of each
general obligation bond issue would be required. If the
broadest form of authority for such bonds were granted
(type (c)), the proceeds of the bonds could be ad-
ministered through the Resources Development Fund
and the Wastewater Program administered by the
Department of Environmental Control.

Option #2: Propose an amendment to the
Nebraska Constitution to authorize state
guarantee of local general obligation bonds for
project types (a), (b), or (c) and modify the
Resources Development Fund so that state
grants and loans are used to retire the local bond
issues.

Both options in this component are capable of
generating large project dollars when needed; i.e. when
local revenues and the sinking fund included in Com-
ponent #1 are not aoequate. The Commission has a