42.350 Area development fund for capital projects.
563 words·~3 min read·
/ky/chapter-42/42-350A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(1)The area development fund in the State Treasury shall be administered by the
Department for Local Government. The fund may receive state appropriations,
gifts, grants, and federal funds and shall be disbursed by the State Treasurer upon
the warrant of the commissioner of the Department for Local Government. Any
unallotted or unencumbered balances in the fund shall be invested in United States
government securities maturing not later than one
(1)year from the date of
investment, and the income from the investments shall be prorated for expenditure
for capital projects in area development districts according to the formula provided
in KRS 42.370.
(2)Money in the fund shall be used only for capital projects which contribute to
community or industrial development in the Commonwealth, KRS 48.300 and
48.500 notwithstanding. Capital projects eligible for financing out of the fund
include and shall be limited to:
(a)The construction, reconstruction, renovation, and maintenance of buildings
and other improvements to real estate;
(b)The acquisition of real property and interests in real property;
(c)The purchase of major items of equipment;
(d)Industrial site development projects, including land reclamation, clearing,
grading, draining, landscaping, and the construction of walkways and fences;
(e)The extension and installation of water, gas, sewer, and electrical utilities
lines to public facilities and industrial sites;
(f)The provision of solid waste management or disposal systems bringing
counties into compliance with state or federal law. All expenses incurred in
connection with or incidental to the construction or acquisition of a capital
project under this section, including architectural, engineering, legal, and
other expenses required for the projects may be paid out of the fund. Money
in the fund may be used to retire a mortgage or other indebtedness
encumbering an eligible capital project made within the preceding five
calendar years to secure the repayment of moneys loaned or advanced to
finance the construction or acquisition of the project and may be used in
match or in combination with funds obtained from other sources for an
eligible capital project. No money shall be expended out of the fund, directly
or indirectly, to pay or reimburse the cost of any feasibility study, master plan
for any capital improvement development or redevelopment project, the
purchase of consumable supplies or any administrative salary, or other
operating or capital expense of any area development district or for the
acquisition, construction, reconstruction, renovation, or maintenance of any
building or property of schools, state institutions of higher learning, or any
road, street, bridge, or highway.
(3)The board of directors of each area development district shall determine from
among the capital project proposals submitted by eligible beneficiary agencies, the
capital projects to be proposed to be constructed or acquired out of the fund. The
area development districts shall submit to the commissioner of the Department for Local Government the capital projects selected for construction or acquisition within the districts. Each project proposal shall include: a detailed description of the project; a statement of the public benefit to be derived from the project; if available, design plans and specifications for the project; an itemized estimate of the cost of the project; a statement of the sources and amounts of funds available from any other source for the construction or acquisition of the project; and other information relating to the proposed capital project as the Department for Local Government may require.