§ 64-1-205 — Financing

The authority has the powers with respect to finance as follows: (1) The authority is an entity for purposes of general state obligation bond financing. The authority has the power to issue its bonds from time to time in consultation with the state. Any bond issue wherein the general obligation of the state is attached must first be approved by the general assembly and provision made for amortization of both principal and interest for a period not to exceed forty (40) years. The authority shall present to the general assembly its needs with regard to specific bond issues, together with evidence that the legislative bodies of the counties and municipalities have appropriated or issued bonds sufficient for matching purposes and its estimate of annual revenues to be received therefrom. Specific bond issues shall describe the purpose, land, works or improvements to be accomplished and their location; (2) (A) The state is hereby authorized to match funds raised by such local governments for the purposes authorized under this part. The state is authorized to match funds raised by such local governments for authority purposes either through issuance of bonds or on pay-as-you-go basis, or a combination of the two (2), with the local governments providing their share of the costs through local appropriations of such funds by their respective legislative bodies. Bonds shall be issued in the usual manner that state bonds are authorized and sold after the approval of such bond issue by the general assembly; (B) In scheduling improvements, the authority shall make maximum use of federal grant funds from any federal program for which it is eligible; (3) The state is hereby authorized to match funds raised locally to provide for the operations of the authority, including costs of administration, planning, engineering, program development and administration, land acquisition, equipment and other capital improvements and bond financing and amortization; (4) Each city, town or county within the area is hereby authorized and empowered to contribute to the work of the authority any amount that each respective governing body, acting in its sole discretion, shall approve to be paid from the general fund of the respective city or county or shall issue its general obligation bonds for and on behalf of the authority; (5) By October 1 of each year, the authority shall transmit to the commissioner of environment and conservation an estimated budget with a request for an amount to be included in the governor's budget recommendations for the next fiscal year. Such budget shall include the estimated administrative, operation and maintenance expenses and shall include appropriate justification for such requested appropriation. Such amount, or other amount as deemed appropriate by the commissioner and approved by the governor, shall be included in the budget request transmitted to the general assembly; and (6) It is the intent of this part that the authority be operated as a state agency subject to all fiscal requirements and procedures that apply to other state departments and agencies and subject to joint local funding as stipulated in this part.

Legislative History

Acts 1973, ch. 409, § 5; T.C.A., §66-1-205.