KRS 67A.755: Annual assessment -- Advance levy and payment -- Assessment for debt

service reserve.

An annual assessment on each parcel of property for which bonds are issued shall be

levied according to the assessed value basis. The first such levy and each succee ding levy

shall be made in advance and shall be sufficient to pay the principal and interest on the

bonds. As a precaution against default and to provide a debt service reserve, the

governing body shall also assess and collect annually an amount equal to o ne-half of one

percent (0.5%) of the total amount of the principal and interest of the bonds. The advance

payment and debt service reserve shall be deposited in an interest bearing account. The

payments, reserve, and earnings shall be used to pay the last installment on the bonds.