§13-1-2. Purposes for which bonds may be issued.
Debt may be incurred and bonds issued under this article for
the purpose of acquiring, constructing and erecting, enlarging,
extending, reconstructing or improving any building, work, utility
or undertaking, or for furnishing, equipping and acquiring or
procuring the necessary apparatus for any building, work,
improvement or department, or for establishing and maintaining a
library or museum for the public use, or a building or structure
for educational purposes, or acquiring a recreation park for the
public use, or for acquiring, constructing, furnishing, equipping
and maintaining civic arenas, auditoriums, exhibition halls and
theaters, or for other similar corporate purpose, or for the
acquiring, constructing, maintaining, repairing, improving public
roads and transportation facilities, for which the political
division is authorized to levy taxes or expend public money. But
no bonds shall be issued for the purpose of providing funds for the
current expenses of any body or political division. Interest
accruing during the construction period, that is to say, the time
when an improvement is under construction and six months
thereafter, shall be deemed a part of the cost of the improvement,
and shall not be deemed current expenses. All engineering and
inspection costs, including a proper proportion of the
compensation, salaries and expenses of the engineering staff of the
political division properly chargeable to any work or improvements,
as determined by the governing body, or the estimated amount of such costs, shall be deemed part of the cost of an improvement.
All costs and estimated costs of the issuance of bonds shall be
deemed a part of the cost of the work or improvement, or of the
property, or of the carrying out of the purposes for which such
bonds are to be issued. The power to acquire or construct any
building, work or improvement as herein provided shall be deemed to
include the power to acquire the necessary lands, sites and
rights-of-way therefor.
Bonds may also be issued by any municipality having a
population of fifty thousand or more or by any county for the
purpose of acquiring land and constructing a building or buildings
for use and occupancy as a college. The proposal for such a bond
issue shall contain a provision that there shall be created a
commission or committee for the purpose of operating the building
or buildings and for renting the same for an amount sufficient to
pay the interest and sinking fund on the bonds proposed to be
issued, and shall contain a further provision that in the event a
sufficient amount is not realized from rent or rents for the
purpose of meeting the debt service, then the city or county shall
lay a levy for such purpose in an amount sufficient within the
constitutional and statutory limitation to pay the interest and
principal on such bonds as the same become due and payable. The
proposal may also contain a provision that when the bonds and the
interest thereon shall have been paid, then the title to the land
and the building or buildings situated thereon may be transferred to the college to which the same have been rented.