42.410 Duties of Office of Financial Management -- Contents of state debt report.
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42.410 Duties of Office of Financial Management -- Contents of state debt report.
(1) The Office of Financial Management established in KRS 42.4201 shall, subject to
the provisions of KRS 41.020 to 41.375 and KRS 42.500, have and perform <br>functions and duties as follows: <br>(a) The analysis and management of short and long-term cash flow requirements; <br>(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 <br>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 <br>payments, the sale of bonds, and staff assistance to the State Property and <br>Buildings Commission, the Asset Liability Commission, and the State <br>Investment Commission.
(2) The Office of Financial Management shall render monthly written reports
concerning the performance of each investment to the State Investment <br>Commission.
(3) The Office of Financial Management shall review state appropriation-supported
bond issues for possible debt service savings through refundings as market <br>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 <br>Legislative Research Commission, for referral to the appropriate committee, <br>indicating the bond issues refunded, original and new interest rates, estimated <br>savings, original and new amortization schedules, issuance costs, debt reserves, <br>disposition of savings, and information on economic, fiscal, and market indicators <br>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 <br>presented in tabular and, where appropriate, graphical form. Indicators shall be <br>presented for the fiscal year just ended and, if data is available and except as <br>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; <br>(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; <br>(e) Appropriation-supported debt as a percent of total assessed value of property; <br>(f) Appropriation-supported debt per capita; <br>(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 <br>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 <br>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 <br>bond index, as published by the Bond Buyer Weekly, the Delphis Hanover <br>Corporation, or other comparable service on a date relevant to the bond issue; <br>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 <br>bond index, as published by the Bond Buyer Weekly, the Delphis Hanover <br>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 <br>enumeration, by fund and restricted fund account, of all debt, debt service, and <br>revenue figures; the source and publication date of figures used for state total <br>personal income, total assessed value of property, population, and selected bond <br>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 <br>the change. If possible, data presented in the current report for previous years shall <br>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 <br>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.
Effective: June 20, 2005 <br>History: Amended 2005 Ky. Acts ch. 85, sec. 16, effective June 20, 2005. -- Amended
2000 Ky. Acts ch. 46, sec. 8, effective July 14, 2000. -- Amended 1997 (1st Extra. <br>Sess.) Ky. Acts ch. 4, sec. 42, effective May 30, 1997. -- Amended 1994 Ky. Acts <br>ch. 508, sec. 13, effective July 15, 1994. </p>
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