Alabama Attorney General Opinion 1979-0007

# THE ATTORNEY GENERAL STATE OF ALABAMA · MONTGOMERY, ALABAMA 36130 CHARLES A. GRADDICK ATTORNEY GENERAL January 23, 1979 File # 6 79-00007 Mr. Don B. Long, Jr., Johnston, Barton, Proctor, Swedlaw & Naff Twelfth Floor, Bank for Savings Building Birmingham, Alabama 35203 Jefferson County -- Birmingham-Jefferson County Transit Authority -- Capital Improvement Fund discussed Dear Mr. Long: Your request of October 30, 1978, together with enclosure, has been received and considered in conjunction with conversation with you relative to the subject matter here under consideration. It is the opinion of this office that the provisions of Act No. 232, 1977 Acts, page 305, stipulate in Section 8 thereof that a capital improvement fund is to be maintained for the purpose of funding capital improvements to the transit system and, therefore, the payment of revenues received by the transit authority should be paid into the fund at such times and in such amounts as may be provided in its operating budget. The discretion of the Transit Authority in the transfer of funds into the capital improvement fund shall be exercised with diligence and reasonableness in order to effectuate the purposes of the fund. Mr. Don B. Long, Jr. January 23, 1979 Page Two It affirmatively appears that the intent of the Legislature in authorizing the capital improvement fund, is to provide a source to replace buses from time to time inasmuch as said Section 8 provides further that the $200,000 fund shall not be subject to the payment of any bonded indebtedness. It further appears that such fund shall be maintained at the $200,000 level and expenditures therefrom shall be replaced from time to time in the nature of a revolving fund. It would be unreasonable to assume that the capital improvements would be limited to a one time expenditure of $200,000 for the very nature of the operations of a transit system requires replacement of buses and possibly terminals over the years. It is hoped that the above conclusions will satisfy the requirements of your operating procedures. Yours very truly, CHARLES A. GRADDICK Attorney General by- Randolph G. Lurie Randolph G. Lurie Assistant Attorney General RGL:cd