Q Once a municipality has complied with the requirements of Section 27-67-31 to be eligible for a portion of the designated funds held by the Department of Revenue and such funds are delivered to the city. Would it be legal and proper to use the funds to pay bonded indebtedness that was incurred for street paving and associated repairs?

A A municipality may expend funds, received pursuant to Section 27-67-35, to repay loan principal amounts provided the loan proceeds were expended for purposes within the scope of Section 27-65-35(1). Whether bond indebtedness was incurred for a purpose within the scope of Section 27-67-35(1) is a factual determination to be made by the municipality. (Attorney Generalís Opinion to Turnage, October 11, 2019)