LIBRARY FUNDS, INVESTMENT THEREOF. Letter, November 30, 1960, to Mr. Bernard E. Nordling, Stevens County Attorney, Hugoton, KS.
Dear Mr. Nordling:
Your letter of November 17, 1960, has been received. You state that the Board of the Stevens County Library has established a building fund, funded by the library levy, and has invested these funds in obligations of the United States Government. The intention is to construct a new library when sufficient funds have accumulated. You state that the Department of Post Audits has informed you that the building fund and the investment of these funds are unauthorized.
We concur in the opinion of the auditors. We find no statutory authority for the county governing body to levy a tax for the purposes other than maintenance of the library, and money derived from this tax is to be kept in a library fund. (G.S. 1959 Supp. 12-1220.) This office consistently has advised that investment of public funds may be make only where specific authority therefor is found in the statutes, such as at G.S. 1959 Supp. 10-131.
We call your attention to G.S. 9-1401, which states that the governing body of any municipal or quasi-municipal corporation shall not designate depositories of its funds, and the custodian shall not deposit the funds other than at such depositories. No interest may be paid on deposits of public money other than state inactive funds.
Labels: "Stevens County"