In 1921, The West Virginia Legislature created the State Sinking Fund Commission with Legislative Code §13-3. The Commission was to act as the fiscal agent/trustee for the bond issues of the State and its political subdivisions. The agency was charged with the responsibility of receiving the deposits of the various issuers, investing them for reasonable return consistent with State statute and bond ordinance requirements, disbursing funds to the appropriate paying agent banks or bondholders to meet debt services, receiving and reconciling cancelled securities, maintaining and reporting the financial accounts of each depositor, and aiding the issuers in the management of their resources. In 1977, the name of the Commission was changed to the Municipal Bond Commission.
Under State statute, the Commission is appointed as fiscal agent for all general obligation (tax levy) bond issues of the county commissions, municipalities, and school districts of the State. It determines levy requirements for all such issues each year. Since the creation of the Commission, the State has not had a default or slow payment on any general obligation issue in the State.
The Commission is also appointed fiscal agent for revenue bond issues of municipalities and their utilities. Additional accounts are maintained for State agency revenue bonds including bridges, colleges and universities. The Commission also serves as fiscal agent for most, though not all, public service districts. It does not handle State general obligation bonds (road and schools), State and local housing bonds, Parkway Authority, School Building Authority bond issues, or any industrial development bond issues. The Commission works closely with the WV Infrastructure and Jobs Development Council, the Water Development Authority, the WV Department of Environmental Protection, and the WV Bureau of Public Health in the management of their water and sewer infrastructure projects. The Commission also maintains many reserve accounts for US Department of Agriculture bond issues.
The Commission is not authorized and does not provide grants or any funding.