Kentucky state law requires local governments to report in writing to the State Local Debt Officer, who resides in the Department for Local Government, before entering into debt in any form. The required notification must contain information outlined in the Notification of Intent to Finance form.
Bonds
Without first notifying the State Local Debt Officer in writing, no bonds or obligations may be issued by or on behalf of any issuer except as provided by KRS 65.940 to 65.956. (See KRS Chapter 065.00 - Sections .940 to .956 Government Leasing Act) Bond notification shall contain the maturity schedule, interest rate, date of issue, purpose, and paying agent. Please see the Notification of Intent to Finance form for the specific information requirements.
When notification is NOT needed:
- All bond issues by school districts or on behalf of school districts such as, school revenue bonds issued by counties or cities acting on behalf of school districts
- All bond issues of the following state agencies: State Property and Building Commission, State Universities and Colleges, Kentucky Turnpike Authority
All Obligated County Bonds exceeding $500,000 must be approved by the State Local Debt Officer prior to issuance. State Local Debt Officer approval is subject to the KRS 13B hearing process.
To notify the State Local Debt Officer of a bond issue please use the Notification of Intent to Finance form.
Leases
Without first notifying the State Local Debt Officer in writing, no lease may be entered into if the lease price exceeds two hundred thousand dollars ($200,000) per KRS 65.944. The notification shall contain the terms of the Lease, including the lease price, number of optional renewal periods, interest rate, date of issue, purpose, and trustee or paying agent if any. Please see the Notification of Intent to Finance form for the specific information requirements.
Notification of County Leases that are $200,000 or less will be accepted by the SLDO, however, no acknowledgement letters will be sent in response.
All County Leases exceeding $500,000 must be approved by the State Local Debt Officer prior to issuance. State Local Debt Officer approval shall be by hearing in accordance with the State Local Finance Officer Policy Manual.
To notify the State Local Debt Officer of a lease issue please use the Notification of Intent to Finance form.
Short Term Borrowing
The Short-term Borrowing Act consists of the statutory sections governing short term loans to state political subdivisions. This Act requires short term loans to be paid off within the same fiscal year (July 1-June 30) as borrowed. Please remember, pursuant to KRS 65.117, should the borrower not notify the State Local Debt Officer in writing of this obligation, the note may not be secure and not an obligation of the political subdivision. Notification to the State Local Debt Officer must occur prior to the loan being finalized and must include all KRS 65.117 required terms.
To notify the State Local Debt Officer of a short term borrowing issue please use the Notification of Intent to Finance form.