Alabama Attorney General Opinion 1979-0071

OFFICE OF THE ATTORNEY GENERAL riqa_ DOD al LEE L. HALE DEPUTY ATTORNEY WILLIAM M. RERUNS. JR. EXECUTIVE ASSISTANT WALTER S• TURNER CHIEF ASSISTANT ATTORNEY CHARLES A. GRADDICK ATTORNEY GENERAL STATE OF ALABAMA ADMINISTRATIVE BUILDING 54 NORTH UNION MONTGOMERY. 34134 AREA 12051, 034-5150 JANIE NOBLES ADMINISTRATIVE ASSISTANT February 2, 1979 Mr. James Record, Chairman Madison County Commission Madison County Court House Huntsville, Alabama 35801 Madison County-Funds County may make short term in- vestments of funds temporarily held. Dear Mr. Record: Your request of January 24, 1979 pertaining to investment and income therefrom for funds held by Madison County pending distribution has been received. It is the opinion of this office that the funds held by the Tax Collector and the License Director of Madison County may be invested in U. S. Certificates and/or savings accounts during the time said funds are held pending distribution as directed by statute. The provisions of Code of Alabama 1975, §11-81-21 provide as follows: "Any municipal funds or county funds not presently needed for other purposes may be invested in any obligations in which sinking funds are now authorized to be invested, pursuant to section 11- 81-19, including appreciation bonds issued by the United States of America on a discount basis. "The terms 'municipal funds' and 'county funds' as used in this section shall include all general, special, permanent, trust and other funds, regard- less of source or purpose, held or administered by Mr. James Record, Chairman February 2, 1979 Madison County Commission Page Two "any county, city or town, or by any officer or agency thereof, in the state of Alabama. Investments of municipal funds or county funds shall be made by the officer or agency controlling their disposition. Such county, city or town, or official or agency thereof, may at any time sell such obligations purchased pursuant to this section, and the money received from such sale and the interest and profits on such investment shall be credited to the fund from which the investment was made. Any such obligation may be deposited for safekeeping with any bank, trust company or savings and loan asso- ciation organized either under the laws of the state of Alabama or of the United States." It is the further opinion of this office that the proceeds of such investment may be placed in the county general fund and expended in the same manner and for the same purposes as amounts collected for ad valorem taxes and licenses. The funds withheld for social security purposes may also be invested in the same manner as those collected for ad valo- rem taxes and licenses however, such income from investment of social security funds should be credited to the fund from which the investment is made and used to defray the expenses for that particular function and any funds remaining should be used by the county for its contribution to social security for its employees. The restriction on the use of the social security funds is due to the fact that said funds are not county funds in the same sense that those collected for licenses and ad valorem taxes are considered to be. CHARLES A. GRADDICK Attor General by • Rand h G. Lurie Assistant Attorney General Mr. James Record, Chairman February 2, 1979 Madison County Commission Page Three ibis office commends you for. taking advantage of every oppor- tunity to provide funds for the operation of Madison County. Yours very truly, RGL:cd