The Authority.
The South Dakota Building Authority (Authority) was
created and organized by Chapter 5-12 of the South Dakota
Codified Laws (the Act). The purposes of the Authority are
to build and otherwise provide hospital, housing,
penitentiary, administrative, classroom, dining hall,
fieldhouse, parking, union building, library, recreational,
laboratory, office and similar facilities for the use by the
State. Amounts issued by the Authority shall not be deemed
to constitute a debt of the State of South Dakota or any
political subdivision thereof. The Authority is a component
unit of the State of South Dakota. As such, the accompanying
financial statements are included in the Comprehensive
Annual Financial Report of the State of South Dakota.
The Authority is empowered under the Act to acquire,
construct, complete, remodel, maintain and equip buildings
and other facilities as the Legislature by law declares to
be in the public interest. To finance such projects, the
Authority is empowered to issue and sell bonds or other
forms of indebtedness in such amount or amounts as the
Authority may determine, to refund and refinance its
indebtedness as often as is advantageous in the public
interest to do so, to pledge any and all income of the
Authority and any revenues derived from such facilities or
any combination thereof, to secure the payment of such bonds
and other forms of indebtedness and to redeem such bonds or
indebtedness. The Authority may also issue interim notes to
finance any of the projects or perform any of the duties
authorized under the Act, including planning, architectural
and engineering fees, acquisition of land and purchase of
equipment.
In addition, the Authority may finance loans to participants
in a program of the United States to assist owners and
operators of highly-erodible cropland in conserving and
improving the soil and water resources of their farms or
ranches within the state and may, for the purpose of
financing such loans, issue revenue bonds or interim notes,
pursuant to the powers vested in the Authority.
Concurrently with the issuance of bonds, interim notes or
other forms of indebtedness, the Authority executes leases
or lease supplements of the related facilities and sites
with the board, department, office, commission or agency of
the State which will use and operate the facility.
The Authority has two separate activities shown below.
Building Authority – Accounts for the lease rental receipts,
debt service payments, service fees and disbursements
necessary to conduct the day-to-day business of the Building
Authority.
Conservation Reserve Enhancement Program (CREP) - The CREP
funds account for the activity of the Conservation Reserve
Enhancement Program).
