Q May a school district issue refunding bonds pursuant to Sections 31-27-1 et seq. of the Mississippi Code to refinance the Districtís Tax Anticipation note?
A No, the purposes for which school boards are authorized to initially issue bonds are primarily found in Section 37-59-3 and Section 37-59-101. Both of these chapters make the issuance of such bonds subject to certain election requirements. Section 37-59-37 authorizes borrowing in anticipation of taxes and revenue, and the borrowed funds must be used for no other purpose than current year expenses. Such borrowing must be repaid within fourteen months from the anticipated taxes. The borrowing authorized in Section 37-59-37 is not subject to any election requirement. Sections 31-27-1 et seq. and 31-15-1 et seq. authorize refunding or refinancing of outstanding bonds, have no election requirements, and are only applicable to bonds issued for the purposes set forth in Section 37-59-3 and Section 37-59-101.To permit the tax anticipation note authorized via Section 37-59-37 to be refinanced under Section 31-27-1 et seq. or Section 31-15-1 et seq. would circumvent the requirements for issuing long-term bonds with regard to the limited purposes of such bonds and the applicable election requirements. (Attorney Generalís Opinion to Watson, May 6, 2016)