Request By:
Hon. Marc Wells
Nichols, Nichols & Wells
36 Union Street
Post Office Drawer 658
Madisonville, Kentucky 42431
Opinion
Opinion By: Robert F. Stephens, Attorney General; Joseph R. Johnson, Assistant Attorney General
This is in response to your November 9, 1978, letter in which you request an opinion of this office regarding the use of proceeds from the coal severance economic aid fund by the Hopkins County Family YMCA, Inc.
First, it is apparent that the Hopkins County Family YMCA, Inc. qualifies as a beneficiary agency pursuant to KRS 42.325(1). Included in the definition of a beneficiary agency are "not-for-profit corporations organized for public purposes and performing governmental functions and services within coal producing counties." Because the Hopkins County Family YMCA, Inc. does contract with Hopkins County and cities located therein for the continuation of recreational programs and services, it clearly falls within the above-quoted definition.
Secondly, it is apparent from the statute that it is permissible for proceeds from the coal severance economic aid fund to be used to pay architectural and engineering fees for services rendered in conjunction with the construction of the recreational facility. This authority is found in KRS 42.330(2)(f).
Thirdly, also found in KRS 42.330(2)(f) is the authority to use money in the fund "to retire a mortgage or other indebtedness encumbering an eligible capital project made on and after January 1, 1977, to secure the repayment of monies loaned or advanced to finance the construction or acquisition of such capital project . . ." Therefore, proceeds from the fund may be used to retire an indebtedness encumbering an eligible capital project of the Hopkins County Family YMCA, Inc. as long as such indebtedness was incurred on or after January 1, 1977.
If we can be of any further assistance, please let us know.