(a) Except as provided in subsection (f), each municipality shall keep all funds received from the municipal street aid fund in a separate fund designated as the state street aid fund and may expend the funds only for one (1) or more of the following purposes:
Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
Highway: includes public bridges and may be held equivalent to the words "county way" "county road" or "state road". See Tennessee Code 1-3-105
Municipal street aid fund: means the funds provided for municipalities by §. See Tennessee Code 54-4-201
Municipality: means any incorporated city or incorporated town charged with the duty of constructing and maintaining streets within its corporate boundaries. See Tennessee Code 54-4-201
Road: includes public bridges and may be held equivalent to the words "county way" "county road" or "state road". See Tennessee Code 1-3-105
State: when applied to the different parts of the United States, includes the District of Columbia and the several territories of the United States. See Tennessee Code 1-3-105
Street: includes streets, highways, avenues, boulevards, publicly owned rights-of-way, bridges, tunnels, public parking areas or other public ways dedicated to public use and maintained for general public travel lying within a municipality's corporate boundaries. See Tennessee Code 54-4-201
Street improvements: means construction, reconstruction, improvement and maintenance of streets, including paving, repaving, grading and drainage, repairs, cleaning, acquisition and maintenance of rights-of-way, extension and widening of existing streets, elimination of railroad grade crossings, acquisition or lease or lease/purchase of trucks or other equipment necessary in the construction and maintenance of streets, including the purchase, construction or leasing of facilities to store the equipment, street lighting, signage and other traffic control devices, and administrative and other necessary expenses, including labor and employee benefits, in connection with the street improvements. See Tennessee Code 54-4-201
written: includes printing, typewriting, engraving, lithography, and any other mode of representing words and letters. See Tennessee Code 1-3-105
(1)Street improvements;(2) Principal of and interest on bonds or other indebtedness incurred to pay for street improvements issued after February 19, 1953. The funds may be specifically pledged as security for the bonds or other indebtedness;(3) The municipality’s part of the cost of acquiring rights-of-way for approaches to bridges and tunnels;(4) To pay the city’s part of the cost of grade eliminations on streets and highways, including state and federal highways; and(5) Not to exceed one-third (1/3) of the total costs of rights-of-way for state or federal highways within the municipality’s corporate boundaries.(b) A municipality, in its discretion, may use the funds to pay for street improvement work by the department of transportation or by a county highway or road department or by another municipality, performed under an agreement with the state, county or municipality.(c) Each municipality shall keep records of receipts into and expenditures from its state street aid fund, in accordance with sound municipal accounting practices, and shall have made an audit at the end of each fiscal year of the accounts of the fund by a certified public accountant, or a public accountant unless otherwise provided by law, and shall submit one (1) certified copy of the audit to the comptroller of the treasury to be reviewed for compliance with this part and minimum standards for municipal audits prescribed by the comptroller of the treasury.(d)(1) All purchases made with state street aid funds by a municipality shall be made in conformity with public advertisement and competitive bidding laws applicable to the particular municipality.(2) Nothing in subdivision (d)(1) shall be interpreted as requiring any municipality to employ a licensed engineer to prepare bid specifications and estimates.(e) Notwithstanding any other law to the contrary, funds in the municipal street aid fund may be expended by municipalities receiving the funds for the purpose of funding mass transit systems. No more than twenty-two and twenty-two one hundredths percent (22.22%) of the funds may be used for the purpose of funding mass transit.(f) Upon written request of a municipality, the comptroller of the treasury may authorize that funds received from the municipal street aid fund may be kept and accounted for in the general fund of the municipality; provided, that revenues and expenditures related to funds received from the municipal street aid fund shall be accounted for separately in the general fund in a manner that allows identification of the source of revenue and the expenditures related to the revenue.
