Oktibbeha County must save most money from its hospital sale

Oktibbeha County supervisors must put at least 80% of the hospital sale's remaining proceeds into a permanent reserve and trust fund. The requirement covers proceeds from selling county-owned OCH Regional Medical Center. The required deposit is based on sale money left after paying debts, obligations, and transaction costs. Any sale money not deposited goes into the Oktibbeha County OCH Proceeds Fund for any lawful county purpose. The law takes effect upon passage. Supervisors had until July 1, 2026, to adopt a resolution setting the exact deposit amount.

County supervisors may use part of the fund's investment earnings for lawful county spending. Allowed spending includes county operations, maintenance, and building projects. Available annual earnings cannot exceed 4% of the fund's average market value over the preceding 36 months, or its lifetime if shorter. After administrative expenses, up to 85% of remaining earnings may go to the Oktibbeha County OCH Proceeds Fund. Undistributed earnings become protected savings. No earnings may be paid out in a year when protected savings, adjusted for inflation, fall below the initial deposit. The investment manager calculates and recommends available earnings on July 1 each year.

County supervisors may withdraw protected savings only for unusually large building or equipment needs or a declared emergency. Emergency withdrawals require a state or federal emergency declaration affecting Oktibbeha County. Withdrawals for extraordinary capital needs require a public hearing with at least 30 days' notice and written findings that no reasonable alternative funding source exists. Both exceptions require approval from four-fifths of the full board and the investment manager's written certification that withdrawals will not harm long-term purchasing power. Any withdrawal stops earnings payouts. All future income must restore the protected savings, including accumulated inflation adjustments, before payouts resume. These withdrawal rules apply after July 1, 2026. Within 90 days of a withdrawal, supervisors must file a restoration plan with the Mississippi Attorney General and Oktibbeha County Chancery Court.

County supervisors serve as trustees and must hire a qualified bank or trust company to manage investments. Meetings and records follow state public-access laws. The manager must give quarterly performance reports and an annual audited compliance statement to the board and the public. The manager must be authorized to operate in Mississippi and supervised by state or federal banking regulators. Its annual fees cannot exceed 0.5% of fund assets. Investments must follow state investment rules. Supervisors cannot adopt a modified investment policy unless the manager certifies that it follows those rules and reasonably preserves purchasing power. The Mississippi Attorney General may enforce the law. If the balance reaches zero, the fund dissolves, the law is repealed, and the Attorney General must investigate possible mismanagement. The initial manager contract required competitive proposals by July 1, 2026. No contract term may exceed five years without rebidding. Trustees must publish an audited financial report by July 1 each year.