Bill > LD481

This bill modifies Maine state law to provide a specific mechanism for a water district to borrow money and issue a warrant before defaulting on its financial obligations. Specifically, the bill allows a water district to borrow money if it determines that its anticipated revenues from water service charges will be insufficient to cover its operating expenses for the current fiscal year. The district can then immediately issue a warrant to the municipalities that comprise the district to repay the borrowed amount, plus interest. The bill requires the district to include all available cash and funds in its revenue calculation, and account for all expected expenditures. Within 30 days of issuing the warrant, the district must submit a financial management plan to the regulatory commission (referred to as "the commission") and the constituent municipalities. The commission will have the opportunity to review the plan and may choose to examine it further. The new provision applies to districts that have previously approved such a mechanism or obtain approval through a specified process. This bill provides a proactive financial tool for water districts to address potential revenue shortfalls before they result in a default on existing financial obligations.

Transportation and Infrastructure

https://legislature.maine.gov/legis/bills/display_ps.asp?LD=481&snum=132