2013 Kentucky Revised Statutes CHAPTER 107 - MUNICIPAL IMPROVEMENTS -- ALTERNATE METHODS 107.180 Sums received and deposited in sinking fund -- How held -- Debt service reserve -- Deficiency assessment -- Refund of surplus.
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107.180 Sums received and deposited in sinking fund -- How held -- Debt
service reserve -- Deficiency assessment -- Refund of surplus.
All sums received and deposited in the sinking fund shall be held inviolate and
applied by the city solely for the payment of the principal of, and interest on, the
bonds issued for the financing of the identified improvement project. The amount
collected, and deposited in the sinking fund from the first improvement assessment
levied in connection with any project, in excess of maturing principal and interest of
the bonds, and for the purpose of creating a "debt service reserve," shall be held in
the sinking fund for that purpose. If the collections from the first annual improvement
assessment levy shall fail to produce a sum sufficient to provide a "debt service
reserve" equal to twenty percent (20%) of future average annual principal and
interest requirements, the next annual improvement assessment shall be fixed at
such level as may be calculated to restore the "debt service reserve" to such level
after providing for current principal and interest maturities. The debt service reserve
requirement of a wastewater collection project by a metropolitan sewer district may
be funded from the proceeds of the bonds. If, at the time of any annual levy of the
improvement assessment, the sum held in the sinking fund as said "debt service
reserve" shall exceed the level herein specified, such excess may be taken into
account in fixing the rate of the improvement assessment for the ensuing year; and if
the amount so held in said "debt service reserve" is below said specified level, the
next annual improvement assessment levy shall be increased in a corresponding
manner. In making the improvement assessment levy for the year preceding the final
maturity of bonds for any improvement project, the governing body may take into
account, and make allowance for, the amount held in the sinking fund of the
particular project as a "debt service reserve"; and if in making such levy the
governing body shall miscalculate and provide funds insufficient to pay the final
maturing principal and interest, the governing body shall be authorized to, and shall
be required, to make a subsequent improvement assessment levy upon the
benefited properties sufficient to make up the deficiency, with interest to date of
payment. If the procedures required by this chapter shall result in a surplus after
payment of the bonds, and all interest thereon to date of payment, such surplus shall
be refunded, pro rata, to the owners of benefited properties, as determined at the
date such surplus is ascertained by the governing body to exist.
History: Amended 1976 (1st Extra. Sess.) Ky. Acts ch. 13. sec. 23. -- Created
1956 Ky. Acts ch. 239, sec. 18, effective February 29, 1956.
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