Request By:
Mr. Joseph H. Conley
Nicholas County Attorney
Courthouse
Carlisle, Kentucky 40311
Opinion
Opinion By: David L. Armstrong, Attorney General; Nathan Goldman, Assistant Attorney General
In your letter you ask whether the fiscal court may turn over a water line it owns to a county water district without receiving compensation for it if it believes this to be in the best interest of the county.
In OAG 83-410 we opined that a fiscal court could not borrow money and transfer it to a water association nor could it construct water lines itself and transfer them to the water association.
However, in OAG 76-240 we opined that a fiscal court could expend county funds for constructing a water line that would be owned by a water district. The county would be reimbursed for part of its outlay by user fees. We opined that KRS 67.083 gave the county the necessary power to engage in such an endeavor. These two opinions would seem to be in conflict.
Recently, in OAG 86-23 we opined that a county may donate money to a private corporation and not violate Kentucky Constitution, Section 179 if the purpose to be achieved is one which the county itself is authorized to do.
KRS 67.083(3)(q) states that the county has the power to cooperate with other units of government and private agencies for the provision of public services. KRS 67.083(3)(r) states that the county has the power to provide water service.
Based on the reasoning in OAG 86-23 we believe that the county may turn over the water line to the water district. To the extent that OAG 83-410 is inconsistent with this opinion, it is hereby modified.