For the purposes of acquiring or otherwise establishing one or more transit systems, or parts thereof, or for the purpose of adding to, extending, operating or improving one or more mass transportation systems owned or to be acquired or established, or for any combination of such purposes, the Transit Authority of Morehead-Rowan County may, in addition to other methods permitted by law, resort to financing according to any of the following financing methods, or any combination thereof, to the extent not inconsistent, with one another.
(A) Upon determination of its financing needs, the Authority by resolution of its Board, may request the public body responsible for its creation and establishment, or any one or more of such public bodies if there be more than one:
(1) To appropriate and pay over to the Authority all or any part of the amount determined to be necessary, or
(2) To provide the amount as determined to be necessary, or any part thereof, from the proceeds of general obligation bonds of such public body or public bodies, in which event the governing body or governing bodies of such public body or public bodies may, in its or their discretion, take such action as may be required by the Constitution and applicable statutes of the Commonwealth to submit to the voters thereof, at one or more elections to be held for such purpose, a proposal or proposals that the issuance of such general obligation bonds be approved and authorized, and if so approved and authorized, such general obligation bonds may be issued and the proceeds thereof may be appropriated to the Authority in the manner requested.
(B) The Authority may issue revenue bonds in its own name, payable solely from its income and revenues, and not constituting or purporting to constitute an indebtedness of the Authority or of any other public body within the meaning of debt-limiting provisions of the Constitution and applicable statutes of the Commonwealth, in the manner and in accordance with the procedures set forth in KRS 58.010 through 58.170 and KRS 61.390, subject to any interest rate limitations which may be applicable thereto as provided by law.
(C) The Authority may issue its mortgage bonds, as authorized by KRS 58.170 and may make provision for obtaining revenues for the payment of the principal of and interest thereon, and for the payment of costs of operation and maintenance, and for the accumulation of reserves of renewals, replacements, extensions and improvements, and for debt service revenues, by leasing any mass transportation system owned by the Authority, or to be acquired or established by the Authority (or, if there be more than one mass transportation system, by leasing the same individually or in any combination) to one or more public bodies, whether or not such public bodies, or any of them, shall have participated in the creation and establishment of the Authority. Any such lease shall be a written instrument, executed by the Authority as lessor, and by one or more public bodies, as a lessee or lessees for a period of one year (which may be from the date of the mortgage bonds, or from the date of acquisition or other establishment of the mass transit system or systems referred to therein), with exclusive options to the lessee or lessees to renew the same thereafter, from year to year, for one year at a time, upon such rentals and other terms and provisions as will provide to the Authority, in the event such lease is renewed by the lessee or lessees from time to time in accordance with such options, annual sums sufficient to provide for meeting the purposes of this section.
(D) General obligation bonds issued for the benefit of the Authority, or revenue bonds or mortgage bonds issued by the Authority may, in the discretion of the parties involved in the issuance thereof, be refinanced, whether at maturity or upon prior redemption in accordance with the terms thereof, by the issuance of bonds according to any of the financing plans herein authorized.
(Ord. passed 10-8-91)