177.730 Bonds for park purposes and bonds for highways, bridges and tunnels to have separate sources of payment of principal and interest -- Provisions for levying taxes as required by the Constitutio - Kentucky Statutes

Download pdf

Loading PDF...

177.730 Bonds for park purposes and bonds for highways, bridges and tunnels to have separate sources of payment of principal and interest -- Provisions for
levying taxes as required by the Constitution. All of said 1960 bonds shall, as aforesaid, be direct general obligation bonds of the
Commonwealth and shall be issued with an irrevocable pledge of the full faith, credit,
resources and unlimited taxing power of the Commonwealth, but in accordance with the
mandatory requirement of Section 50 of the Constitution of the Commonwealth there
shall be levied and collected, annually, taxes sufficient to pay the interest stipulated, and
to discharge the debt within thirty (30) years, as follows:
(1) In order to provide for the payment of the stipulated interest, and to discharge within thirty (30) years, the indebtedness to be evidenced by the ten million dollars
($10,000,000) of 1960 bonds to be issued for acquisition, development and
improvement of state parks and for development and improvement of existing state
parks, there shall be levied and collected annually so long as any of such bonds are
outstanding and unpaid, taxes of the Commonwealth upon all real property, tangible
personal property, and intangible personal property from time to time subject to
taxation by the Commonwealth, at rates not less than the rates now imposed by law
or rates so adjusted as not in any event to jeopardize the prompt payment of
principal of and interest on said bonds when due and payable. All proceeds of such
taxes, to the extent necessary for payment of the principal of and interest on the ten
million dollars ($10,000,000) of 1960 bonds designated for state park purposes, as
and when such principal and interest, respectively, shall become due and payable,
are hereby appropriated for that purpose; and such amount thereof shall in each year
be set aside in the State Treasury in the "Park Bond Sinking Fund," hereby created,
and shall be held therein and disbursed and used upon order of the State Treasurer
solely for the purpose of paying the principal of and interest on said bonds when
and where due and payable, until all of said bonds, or such lesser amount thereof as
may have been issued within thirty (30) years from date of first issue shall have
been paid in full. In each year, after setting aside such prescribed amount into the
park bond sinking fund, the remainder of the proceeds of said identified taxes shall
be available for any proper general fund purposes of the Commonwealth without
restriction. Moneys from time to time set aside and deposited in said park bond
sinking fund, as hereinabove provided, may be invested by the State Investment
Commission from time to time in United States government securities which
mature, or are subject to redemption at the option of the holder, at or before the
various times when cash funds will be required for payment of the maturing
principal of and interest on said identified bonds; and income received from such
securities shall be retained in the said park bond sinking fund and may be taken into
consideration in the next ensuing annual determination of the amount of such tax
proceeds required to be set aside into the said fund as hereinabove provided. (2) In order to provide for the payment of the stipulated interest, and to discharge within thirty (30) years the indebtedness to be evidenced by the ninety million
dollars ($90,000,000) of 1960 bonds to be issued for the construction of highways,
bridges and tunnels there shall be levied and collected, annually, taxes of the Commonwealth for the benefit of the state road fund in the form of license, excise
taxes and fees relating to registration, operation and use of vehicles on public
highways and excise taxes, use and license fees and taxes relating to gasoline and
other motor fuels consumed upon the public highways in the Commonwealth, at
rates not less than the rates now imposed by law or at rates so adjusted as to produce
for the road fund not less than the amount now derived from all such sources.
Subject to certain prior vested rights hereinafter enumerated, all proceeds of such
taxes, to the extent necessary for payment of the principal of and interest on the
ninety million dollars ($90,000,000) of 1960 bonds designated for the highways,
bridges and tunnels, as and when such principal and interest, respectively, become
due and payable, are hereby appropriated for that purpose; and such amount thereof
shall in each year be set aside in the State Treasury into the "Highway Bond Sinking
Fund of 1960," hereby created within the state road fund, and shall be held therein
and disbursed and used upon order of the State Treasurer solely for the purpose of
paying the principal of and interest on said identified bonds when and where due,
until all of said bonds, or such lesser amount thereof as may have been issued
within such period of thirty (30) years, shall have been paid in full; provided,
however, moneys in said fund may be invested pending disbursement as in the case
of moneys in the park bond sinking fund as herein above provided. In setting aside
moneys from the proceeds of such taxes and fees into the highway bond sinking
fund of 1960, due regard shall be had for any and all vested rights in and to such
proceeds existing in favor of (a) the holders of general obligation bonds of the
Commonwealth heretofore or hereafter issued and outstanding pursuant to KRS
177.580 to 177.630, as authorized and approved by the voters at the general election
on November 6, 1956, (b) the holders of revenue bonds issued for constructing the
turnpike between Louisville and Elizabethtown, Kentucky, as provided in this
chapter and in a certain trust agreement made in connection with the issuance of
said bonds, including recognition of the commitment of the Commonwealth to pay
the cost of maintaining, repairing and operating said turnpike, (c) the holders of
revenue bonds issued for the construction of certain bridges as set forth in KRS
Chapter 180 and in certain trust indentures securing such bridge revenue bonds,
including the commitment of the Commonwealth to pay the cost of operating and
maintaining such bridges, (d) the holders of valid contracts of the Department of
Highways which are in existence on the respective dates any bonds are issued
pursuant to KRS 177.700 to 177.820, and (e) the right of the several counties of the
Commonwealth to receive distribution of certain revenues for the respective county
road funds as provided in KRS 47.020. The right is reserved to the Commonwealth
to provide in the future for the construction of additional turnpikes and bridges and
financing the same by issuing revenue bonds; and in all such instances the
Commonwealth shall have the right to create for the security and source of payment
of such revenue bonds a first and prior pledge of and lien upon any and all revenues
identified as being generated by such respective projects. In each year, after setting
aside into the 1960 highway bond sinking fund the amount herein prescribed, and
after due recognition of the rights enumerated above, the remainder of the proceeds
derived from such taxes and fees may be expended and used for any lawful and proper purposes of the state road fund as otherwise permitted by the Constitution
and laws of the Commonwealth. Effective: June 16, 1960
History: Created 1960 Ky. Acts ch. 106, sec. 5, effective June 16, 1960.