Kentucky County Treasurer’s Fundamentals Course

1. REQUIRED BY THE STATE/LOCAL DEBT OFFICER Kentucky County Treasurer’s Fundamentals Course Governmental Leasing Act Notification and Approval Process April 23, 2015 http://www.kactfo.com Slide 1 of 14

2. Kentucky County Treasurer’s Fundamentals Course Governmental Leasing Act - Notification and Approval Process • No local government may enter into a lease with a principal amount exceeding $200,000 without first notifying the State Local Debt Officer in writing. A local government proposing to enter into a lease under the Governmental Leasing Act shall complete the Notification of Intent to Finance/Application for Approval form (SLDO-1). An electronic copy of the form is available for download from • http://www.dlg.ky.gov/downloads. • Pursuant to KRS 65.117 April 23, 2015 http://www.kactfo.com Slide 2 of 14

3. Kentucky County Treasurer’s Fundamentals Course Governmental Leasing Act - Notification and Approval Process • No county government (excluding urban counties) shall enter into a lease exceeding $500,000 in principal amount without first receiving the written approval of the State Local Debt Officer. When a county desires to enter into a lease having total payments designated as principal exceeding $500,000, the following procedures must be observed. • Pursuant to KRS 65.944 April 23, 2015 http://www.kactfo.com Slide 3 of 14

4. Kentucky County Treasurer’s Fundamentals Course Governmental Leasing Act - Notification and Approval Process • The county shall hold a public hearing at the county seat to discuss, at a minimum, the following information • The public purpose which necessitates the lease. • The complete terms of the lease agreement. • The strategy of the county to meet the financial commitment imposed by the lease. • Pursuant • To • KRS 65.944 April 23, 2015 http://www.kactfo.com Slide 4 of 14

5. Kentucky County Treasurer’s Fundamentals Course Governmental Leasing Act - Notification and Approval Process • Upon receipt of an application for approval of a lease, the State Local Debt Officer will assign the lease application to a hearing officer and schedule a hearing to be held at his office within ninety (90) days. Hearings shall be conducted under KRS Chapter 13B and its implementing regulations. • Pursuant • To • KRS 65.944 April 23, 2015 http://www.kactfo.com Slide 5 of 14

6. Kentucky County Treasurer’s Fundamentals Course Governmental Leasing Act - Notification and Approval Process • The State Local Debt Officer will deliver notice of the hearing to the County Judge/Executive, who shall cause a copy of the notice to be published in accordance with KRS Chapter 424 not less than seven (7) days, nor more than twenty-one (21) days prior to the hearing. • Pursuant • To • KRS 65.944 April 23, 2015 http://www.kactfo.com Slide 6 of 14

7. Kentucky County Treasurer’s Fundamentals Course Governmental Leasing Act - Notification and Approval Process • Pursuant • To • KRS 65.944 • At any time during the evaluation process, the State Local Debt Officer may request additional documentation deemed necessary to properly evaluate the proposed lease. April 23, 2015 http://www.kactfo.com Slide 7 of 14

8. Kentucky County Treasurer’s Fundamentals Course Governmental Leasing Act - Notification and Approval Process • Prior to the hearing, the County shall provide the State Local Debt Officer with the following documentation: • Minutes from the local public hearing • Affidavit of publication of SLDO hearing (if hearing is required) and newspaper advertisement tear sheet • Copy of lease • Executed copy of ordinance/resolution of fiscal court authorizing the lease • Certification from local government attesting to the ability to meet additional financial commitments necessitated by the lease and statement as to taxes and revenues to be collected during the term of the lease. • Pursuant • To • KRS 65.944 April 23, 2015 http://www.kactfo.com Slide 8 of 14

9. Kentucky County Treasurer’s Fundamentals Course Governmental Leasing Act - Notification and Approval Process • Pursuant • To • KRS 65.944 • The State Local Debt Officer shall issue an approval or disapproval in accordance with the requirements of KRS Chapter 13B. April 23, 2015 http://www.kactfo.com Slide 9 of 14

10. Kentucky County Treasurer’s Fundamentals Course Governmental Leasing Act - Notification and Approval Process • Pursuant • To • KRS 65.944 • A party may appeal a decision of the State Local Debt Officer approving or denying a bond issuance as provided in KRS 66.310 or KRS 13B.160, whichever is applicable. April 23, 2015 http://www.kactfo.com Slide 10 of 14

11. Kentucky County Treasurer’s Fundamentals Course Governmental Leasing Act - Notification and Approval Process • A county may request reconsideration of a disapproval by the State Local Debt Officer if it can demonstrate the determination has been made in error, or if alterations are made to the lease which alleviate the concerns expressed by the State Local Debt Officer. • Pursuant • To • KRS 65.944 April 23, 2015 http://www.kactfo.com Slide 11 of 14

12. Kentucky County Treasurer’s Fundamentals Course Governmental Leasing Act - Notification and Approval Process • Upon receiving the approval of the State Local Debt Officer, a county may enter into the lease at any time within the current fiscal year. A copy of the fully executed lease must be submitted to the State Local Debt Officer within ten days of execution. • Pursuant • To • KRS 65.944 April 23, 2015 http://www.kactfo.com Slide 12 of 14

13. Kentucky County Treasurer’s Fundamentals Course Governmental Leasing Act - Notification and Approval Process • Alternate lease approval methods: • The State Local Debt Officer may, but is not required to, approve a lease without conducting a 13B hearing in the following situations: • The lease is payable solely from the revenues of a project and will not constitute a debt of the county. The county shall provide an opinion of counsel that the lease will not constitute a debt of the county within the meaning of the Kentucky Constitution. • The lease is a refinance of an earlier approved lease, and the refinance will not increase the principal amount of the lease or change the nature of the obligation. • Pursuant • To • KRS 65.944 April 23, 2015 http://www.kactfo.com Slide 13 of 14

14. This is to certify that, on this day, Thursday, April 23, 2015 FIRST LAST Has successfully completed the Kentucky County Treasurer’s Fundamentals Course Governmental Leasing Act - Notification and Approval Process Tammy Robertson K.A.C.T.F.O. President http://www.kactfo.com