67A.882 Bids -- Apportionment of costs -- Alternative payment methods and funding -- Refunds by urban-county government. - Kentucky Statutes

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67A.882 Bids -- Apportionment of costs -- Alternative payment methods and funding -- Refunds by urban-county government. (1) Proposals for the construction of the project shall be solicited upon the basis of submission of sealed, competitive bids after advertisement by publication pursuant
to KRS Chapter 424, following adoption of the ordinance of determination and
expiration of the permissive litigation period, or alternatively, the conclusion of
litigation in a manner favorable to the project. (2) After all costs of the project have been determined upon the basis of the construction bidding, the costs shall be apportioned among the owners of benefited
property pursuant to the method of assessment previously determined in the
ordinance of initiation and the ordinance of determination. However, in determining
the apportionment of individual costs for purposes of affording to the owners of
benefited property the privilege of paying the assessment levies in full on a lump-
sum basis, the urban-county government shall exclude amounts required for the
creation of the debt service reserve fund, capitalized interest costs, and any bond
discount which the government may allow in connection with the sale of bonds to
provide funds for the costs of construction not paid initially by the owners of
benefited properties on a lump-sum basis. (3) The owners of benefited property shall be notified in writing of the exact amount levied against their individual properties, which amount may, at the option of each
owner, be paid in full on a lump-sum basis within thirty (30) days. Such owners
shall be notified that in the event they exercise the option to pay in full on a lump-
sum basis and in the event any refund of lump-sum payments or of interest earned
on lump-sum payments is subsequently made, it shall be paid to the owners of the
benefited properties for which lump-sum payments have been made as determined
at the date the appropriate ordinance under either KRS 67A.894 or subsection (5) of
this section is adopted. The statement submitted to such owners of benefited
property shall additionally advise such owners that in the event such owners do not
elect to pay the special improvement benefit assessment in full within the period of
thirty (30) days from receipt, the urban-county government shall issue bonds
pursuant to KRS 67A.871 to 67A.894 for the purpose of providing the cost of
construction of the project, including the debt service reserve fund, if paid from
bond proceeds, capitalized interest costs, any bond discount, together with all other
costs, as the term is defined in KRS 67A.871(5). The owners of the benefited
property shall further be advised that bonds and the interest thereon shall be
amortized by annual improvement benefit assessment levies against all benefited
properties which have not made lump-sum payments in accordance with the method
of apportionment provided by the ordinance of initiation and the ordinance of
determination. (4) At the conclusion of the thirty (30) day permissive lump-sum payment period, the urban-county council shall determine the aggregate principal amount of
improvement benefit assessments paid in full by owners of benefited property; shall
order the deposit of the moneys in a trust account the principal of which shall be
used solely to pay the costs of construction of the project; shall aggregate all unpaid improvement benefit assessments for purposes of determining the principal amount
of bonds to be issued by the government to provide the costs of the project; shall
compute the debt service reserve fund in respect to the bonds, if the fund is to be
capitalized from bond proceeds; shall determine the bond discount and capitalized
interest which shall be applicable to the issue of bonds; and shall proceed to
complete the financing of the costs of construction of the project through the
adoption of the ordinance of bond authorization as provided in KRS 67A.883 and
the sale of bonds authorized pursuant thereto. (5) If an urban-county government has taken steps under KRS 67A.871 to 67A.893 to provide for, construct and finance any project, and finally determines, by
appropriate ordinance, that the project is essentially completed, the legislative body
of the urban-county government may, in its discretion, refund any part, or all, of the
interest earned on lump-sum payments, pro rata, to the current owners of the
benefited properties which paid on a lump-sum basis, as determined at the date the
ordinance determining the project is essentially completed is adopted. Effective: June 20, 2005
History: Amended 2005 Ky. Acts ch. 85, sec. 95, effective June 20, 2005. -- Amended 1982 Ky. Acts ch. 334, sec. 1, effective July 15, 1982. -- Created 1976 Ky. Acts
ch. 371, sec. 12, effective March 30, 1976.