KRS § 42.410 — KY Code / Title VI / Chapter 42 / Section 42.410
42.410 Duties of Office of Financial Management -- Contents of state debt report
Status: in_force

42.410 Duties of Office of Financial Management -- Contents of state debt report.

(1) The Office of Financial Management established in KRS 42.0201 shall, subject to

the provisions of KRS 41.020 to 41.375 and KRS 42.500, have and perform

functions and duties as follows:

(a) The analysis and management of short and long-term cash flow requirements;

(b) The maximization of the return on state investments given the cash flow and

liquidity requirements;

(c) The coordination and monitoring of cash needs relative to investment and debt

activity;

(d) The development of a long-term debt plan including criteria for the issuance

of debt and an evaluation of how much total state debt is justified;

(e) The responsibility for liaison with the General Assembly on all investment

and debt matters, including, but not limited to, new bond issues, the status of

state debt, and the status of state investments; and

(f) All other functions of the cabinet relative to state investment and debt

management including, but not limited to, the making of debt service

payments, the sale of bonds, and staff assistance to the State Property and

Buildings Commission, the Asset Liability Commission, and the State

Investment Commission.

(2) The Office of Financial Management shall render monthly written reports

concerning the performance of each investment to the State Investment

Commission.

(3) The Office of Financial Management shall review state appropriation-supported

bond issues for possible debt service savings through refundings as market

conditions warrant.

(4) The Office of Financial Management shall submit a report within forty-five (45)

days after the publication of the Comprehensive Annual Financial Report to the

Legislative Research Commission, for referral to the appropriate committee,

indicating the bond issues refunded, original and new interest rates, estimated

savings, original and new amortization schedules, issuance costs, debt reserves,

disposition of savings, and information on economic, fiscal, and market indicators

of the Commonwealth's debt position.

(5) The state debt report shall include, but not be limited to, economic, fiscal, and

market indicators of debt position as set forth in this section. Indicators shall be

presented in tabular and, where appropriate, graphical form. Indicators shall be

presented for the fiscal year just ended and, if data is available and except as

otherwise noted, for the preceding nine (9) fiscal years.

(6) Economic indicators shall include:

(a) Nonappropriation-supported debt as a percent of state total personal income;

(b) Nonappropriation-supported debt as a percent of total assessed value of

property;

(c) Nonappropriation-supported debt per capita;

(d) Appropriation-supported debt as a percent of state total personal income;

(e) Appropriation-supported debt as a percent of total assessed value of property;

(f) Appropriation-supported debt per capita;

(g) Appropriation-supported debt service as a percent of total state personal

income;

(h) Appropriation-supported debt service as a percent of total assessed value of

property; and

(i) Appropriation-supported debt service per capita.

(7) Fiscal indicators shall be reported separately and in total for the general fund, the

road fund, and each restricted fund account from which debt service is expended.

(8) Fiscal indicators shall include:

(a) Annual appropriation-supported debt service as a percent of total revenues;

and

(b) Annual appropriation-supported debt service as a percent of available

revenues.

(9) Market indicators shall include:

(a) The rating assigned by Moody's Investors Services, Inc., or a comparable

rating agency, to each nonappropriation-supported bond issued in the fiscal

year just ended;

(b) The rating assigned by Moody's Investors Services, Inc., or a comparable

rating agency, to each appropriation-supported bond issued in the fiscal year

just ended;

(c) A comparison of the difference between the true interest cost of each

nonappropriation-supported bond issued and the value of a selected revenue

bond index, as published by the Bond Buyer Weekly, the Delphis Hanover

Corporation, or other comparable service on a date relevant to the bond issue;

and

(d) A comparison of the difference between the true interest cost of each

appropriation-supported bond issued and the value of a selected municipal

bond index, as published by the Bond Buyer Weekly, the Delphis Hanover

Corporation, or other comparable service on a date relevant to the bond issue.

(10) The state debt report shall contain a complete description of the sources of data used

to prepare the report. This description shall include, but not be limited to, an

enumeration, by fund and restricted fund account, of all debt, debt service, and

revenue figures; the source and publication date of figures used for state total

personal income, total assessed value of property, population, and selected bond

indexes.

(11) If the sources of data used in a current report differ substantially from those used in

the report of the preceding year, the report shall include a detailed explanation of

the change. If possible, data presented in the current report for previous years shall

be calculated so that, in any one (1) report, indicators for all years are calculated

using consistent data categories. The use of any inconsistent data shall be noted and

explained.

(12) Nothing in this section shall authorize any act inconsistent with the authority

granted the State Investment Commission by KRS 42.500 and 42.525.