KRS 75.022: Definitions -- Respective rights of city and fire district to provide certain

fire protection services within city boundaries -- Fire protection services for

newly annexed city territory -- Financing of fire protection services -- Written

agreements between fire district and city -- Provision of fire service to territory

annexed by city that does not maintain a regular fire department.

(1) (a) As used in subsections (2) to (4) of this section, "city" means any city

government that maintains a regula r fire department as defined in KRS

95.010(3)(b).

(b) As used in subsections (2) to (5) of this section, "fire district" means a fire

protection district or a volunteer fire department district created in accordance

with the procedures of KRS 65.182, count y volunteer fire department

established under the authority of KRS 67.083, and volunteer fire departments

created as nonprofit corporations under KRS Chapter 273.

(2) Except as provided in subsection (4) of this section, a fire district shall not contain

or later include within its boundaries any territory that is located within the

corporate limits of a city. Subject to the limitations of subsections (3) and (4) of this

section, a city shall have the primary right to provide fire service to all territories

located within its corporate limits.

(3) (a) In order for a city to assume the provision of fire service to annexed or newly

incorporated territory that is being served by a fire district, the city shall pay

the fire district for the proportionate share o f the fire district's indebtedness

that was incurred while the annexed or newly incorporated territory was

included within the fire district.

(b) Unless otherwise agreed to in writing by the city and the fire district, the

proportionate share of the fire d istrict's debt attributable to annexed or newly

incorporated territory shall be calculated based upon the ratio of the total

value of taxable real property included within the annexed or newly

incorporated territory to the total value of all taxable real p roperty located

within the entire fire district as it existed prior to the annexation or

incorporation by the city. The resulting quotient shall be multiplied by the fire

district's total indebtedness to determine the amount of liability that the city is

responsible for paying to the fire district.

(c) Unless otherwise agreed to in writing by the city and the fire district, the city

shall pay the entire amount of the proportionate share of the indebtedness to

the fire district prior to assuming service in the annexed or newly incorporated

territory or shall pay the total amount in equal yearly installments over no

more than three (3) consecutive years. The first installment shall be due to the

fire district prior to the city assuming the provision of fire services.

(d) If a city meets the requirements of this subsection, the annexed or newly

incorporated territory shall be stricken from the boundaries of the fire district,

and the fire district shall no longer be authorized to collect any taxes from

property owners within the stricken territory.

(4) A city shall cede its primary right to provide fire services to annexed or newly

incorporated territory located within a fire district if:

(a) The city does not comply with the requirements of subsection (3) of thi s

section to pay the fire district for the proportionate share of the indebtedness

attributable to the annexed or newly incorporated territory;

(b) The fire district has no indebtedness at the time of the annexation or

incorporation, and the fire district and city agree in writing that it is in the best

interests of the citizens and property owners within the annexed or

incorporated territory to continue to have fire service provided by the fire

district. The agreement entered into by the fire district and the city may

contain any agreed-upon term, conditions, and limitations; or

(c) Any circumstance exists where the fire district and city agree in writing that it

is more appropriate and beneficial to the citizens and property owners within

the territory for the fire district to continue the provision of fire services

within the annexed or newly incorporated territory. The agreement entered

into by the fire district and the city may contain any agreed -upon term,

conditions, and limitations.

(5) (a) As used in this subsection, "regular fire department" has the same meaning as

in KRS 95.010(3)(b).

(b) A city that does not maintain a regular fire department, but maintains its own

volunteer fire department:

1. Shall have the right to assume the provision of fire service to territory

annexed by the city that, at the time of the annexation, is being served by

a fire district that does not maintain a regular fire department. A city that

elects to assume the provisi on of fire service pursuant to this subsection

shall follow the procedures established in subsections (3) and (4) of this

section; and

2. Shall not have the primary right to provide fire services to any territory

that is being served by a fire district tha t maintains a regular fire

department, unless the fire district strikes the territory from the district

boundaries as authorized in KRS 75.020.