107.180 Sums received and deposited in sinking fund -- How held -- Debt service reserve -- Deficiency assessment -- Refund of surplus. - Kentucky Statutes

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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.