Request By:
Mr. Wilburn J. Pratt
Commissioner, Department
for Local Government
Capital Plaza Tower
Frankfort, Kentucky
Opinion
Opinion By: Steven L. Beshear, Attorney General; By: Charles W. Runyan, Assistant Deputy Attorney General
Your problem was described as follows:
"Our Department has been asked to assist a county in the implementation of a fiscal policy related to county parks. The county proposes to place on the ballot for a vote by the public the question of a tax levy for the purpose of construction and maintenance of improvements in a county-owned park."
Question No. 1:
"Does a county have authority to place the question of a tax levy for park maintenance to a vote of the people? Is a simple majority of votes cast enough to carry?"
To put a question on the ballot requires either constitutional or statutory authority. 26 Am.Jur., 2d, Elections, § 183.
We assume this involves a park system established and operated by the county pursuant to KRS 97.010 and 97.030. If a special ad valorem tax levy is contemplated and if a contractual indebtedness in connection with the construction and maintenance of park improvements is envisioned, and such "contractual indebtedness" cannot be funded out of current county revenues, the fiscal court may place this question [park maintenance and also park construction] on the November ballot pursuant to the authority granted in § 157, Kentucky Constitution. Also see § 148, Kentucky Constitution; and
Murray v. Irvan, 170 Ky. 290, 185 S.W. 859 (1916), pointing out that an election under § 157 of the Constitution must be held on the first Tuesday after the first Monday in November, as provided by § 148 of the Constitution. See also
Frances v. Bowling Green, 259 Ky. 525, 82 S.W.2d 804 (1935), emphasizing that this section applies to "contract indebtedness" , whether with or without government obligation bonds, and not to necessary governmental expenses. The requisite vote is two-thirds (2/3) of the voters voting at such election for that purpose. There is an absolute county maximum indebtedness provided in § 158 of the Constitution [2% of the total county property assessments], which cannot be exceeded except in case of emergency, the public health or safety should so require.
Rodgers v. Crittenden County, Ky., 337 S.W.2d 728 (1960).
Question No. 2:
"Is the issue of a tax for park maintenance a separate issue from a bond issue and tax for park construction? Does the bond issue require a two-thirds vote? Can money for park bonds be placed in the same fund with money for park maintenance?"
We see no objection to including on the ballot question the maintenance issue with the bond issue for construction of park improvements, provided the question on the ballot clearly delineates the precise indebtedness involved in both categories and relates to the pertinent statutes. See KRS 66.010 and 66.040, relating to county obligation bond issues. The bond issue part of the question, under KRS 66.040, requires two-thirds (2/3) of the votes on the question. Of course the tax mentioned in the question must fund both the construction and maintenance.
The money for maintenance [from proceeds of bond sale] should be kept separate from the bond sale proceeds used for the park construction. Then, of course, there must be established a sinking fund in order to pay the interest and principal of the entire bond issue. See KRS 66.030 and KRS 66.010. See also KRS 66.210 and 66.310, relating to approval of county bonds, and KRS 66.370, concerning annual reports of county indebtedness to the state local finance officer.
Question No. 3:
"Can a referendum on tax for park maintenance be combined with a vote on bond issue for park construction? Does this require the question to state the revenue from the tax will be used to pay bonds first and balance applied to park maintenance? What vote is required to carry the question?"
We have answered that under question No. 2. The question, including the special tax levy, can be combined in one package, except that the exact monetary amounts for each category [maintenance and construction] must be indicated on the question for the ballot. The special tax voted on must be sufficient to fund both projects, and separate accounting and handling of the tax revenue are required as mentioned above. Here again a two-thirds (2/3) vote of the voters voting on the package question is required by § 157, Constitution.