KRS 262.778: Resolution for project -- Notice, hearing -- Election -- Declaratory

judgment or injunction suit, time for -- Issuance of bonds -- Levy.

(1) Upon determination by the board of directors of a watershed conservancy district

that a watershed project is n ecessary, and upon approval of the plans for same by

the board of supervisors, the board of directors shall adopt a resolution which shall

set out:

(a) A description of the project in general terms;

(b) A list of the benefited lands located in the flood pl ain, as determined by the

board of directors, giving the acreage of such lands and the names of the

owners thereof as defined by KRS 262.010(7) with a classification of such

lands or parts thereof into classes in order that assessments may be made

according to direct benefits;

(c) The total cost of the project; and

(d) The fact that the cost shall be met by a bond issue payable solely from annual

assessments to be levied upon the lands set out in the resolution on the basis

of a certain amount per acre acco rding to benefits received, not to exceed in

any one (1) year a sum per acre specified in the resolution, with the annual

assessments to extend over a period of years specified in the resolution not to

exceed thirty (30) years.

(2) The board of directors s hall cause due notice of the resolution to be given to all the

owners of benefited lands, as determined by the board. Said notice shall set out the

time and place of a meeting of the board of directors of the watershed conservancy

district at which owners of benefited lands who may be liable for the annual

assessments may be heard.

(3) At the hearing upon the resolution, owners of benefited lands may voice their views

concerning the proposed project as to whether said project should be undertaken,

and the s cope thereof, or the propriety of placing their lands in the project area or

the degree of benefit received by their lands. The board shall prepare a record

summarizing the proceedings. If the board of directors determines as a result of the

hearing that the project should be carried out as planned, it may make such changes

or revisions in the resolution as it deems proper and shall give due notice of an

election to be held at which benefited landowners may vote on the question of

annual special assessments to defray the cost of the project. The notice of the

election shall include the text of the resolution of the board in its final form. The

board of directors may give due notice as provided in KRS 262.010(4).

(4) The board of directors shall prepare to be presented to the voters the question:

"Should the assessment proposed by resolution of the .... Watershed Conservancy

District be adopted?". Voters shall be instructed to vote "yes" or "no." Only owners

of benefited land as set out in the resolution shall be eligible to vote. The board of

directors may provide for a meeting of the landowners at which the vote may be

cast, in which case qualified voters may vote by absentee vote. The board shall

appoint a polling superintendent and other necessary election officers, giving

representation to the opponents of the question as well as to proponents.

(5) If a majority of those voting upon the proposition favor the assessment, the board

shall give due notice of the vote and the fact that bonds will forthwith be is sued

payable from special assessments. Any owner of property to be benefited by the

project may, within forty (40) days after publication of such notice, file an action in

the Circuit Court of the county in which his lands are located seeking relief by

declaratory judgment or injunction. If a suit is filed, the county attorney should

represent the board of directors in upholding the validity of the proposed bond

issue. After the lapse of time specified herein, all actions by owners of properties to

be benefited shall be forever barred.

(6) If no suit is filed and no injunction issued within the time allowed in subsection (5)

of this section, the board of directors shall by resolution authorize the issuance of

bonds designated "watershed project assessment bo nds," determining the principal

amount thereof and establishing the denominations and maturity dates thereof and

shall levy an annual assessment effective only upon the benefited properties and

based on the acreage thereof. The annual rate of such assessme nts shall be fixed

when other taxes of the district are levied and shall be sufficient in each year to

provide for the payment of such bonds and interest coupons as they mature and

sufficient to provide a fund equal to twenty percent (20%) of the average a nnual

principal and interest requirements, the same to constitute a "debt service reserve"

as a precaution against possible default by failure to collect annual levies. The

bonds shall state on their face that they do not constitute a debt of the district but are

payable solely from collection of special assessments made upon benefited lands

lying in the watershed conservancy district.