KRS § 67A.882 — KY Code / Title IX / Chapter 67A / Section 67A.882
67A.882 Bids -- Apportionment of costs -- Alternative payment methods and funding -- Refunds by urban-county government
Status: in_force

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.