Elizabethtown holds first reading of up to $47 million bond for outdoor music venue

Elizabethtown City Council held a first reading on March 17 of an ordinance authorizing the issuance of general obligation bonds in an amount not to exceed $47,000,000 to finance the acquisition, construction and equipping of an outdoor music venue. A summary prepared by David Malone, bond counsel for the city, was read aloud at the meeting.

The ordinance authorizes the establishment of funds and a sinking fund to pay bond principal and interest and contemplates a publicly advertised competitive sale with maturities of up to 30 years. The ordinance states the city may levy a bond tax to assure payment of the bonds “only if other taxes or revenues of the city are not sufficient to pay the principal and interest requirements of the bonds as same become due,” language that was included in the summary read at the meeting and cites provisions of Kentucky law referenced in that summary.

City officials told the council the bond is structured as a general revenue bond and that current revenue projections, including tourism revenues tied to the project, are expected to be sufficient to meet debt service without imposing a new dedicated tax. The bond summary read at the meeting references section 66.011, subsection 4, of the Kentucky Revised Statutes and section 66.111 of the Bond Act, and cites the state constitution provision noted in the summary.

No formal vote to adopt the ordinance took place; the item was recorded as a first reading. A copy of the full ordinance is available from the city clerk and bond counsel David Malone was present to answer legal questions, the council was told.