{"data":{"id":"us-ky/krs-107.180","jurisdiction":"us-ky","citation":"KRS 107.180","heading":"Sums received and deposited in sinking fund -- How held -- Debt service","body":"reserve -- Deficiency assessment -- Refund of surplus.\nAll sums received and deposited in the sinking fund shall be held inviolate and applied by\nthe city solely for the payment of the principal of, and interest on, the bonds issued for the\nfinancing of the identified improvement project. The amount collected, and deposited in\nthe sinking fund from the first improvement assessment levied in connection with any\nproject, in excess of  maturing principal and interest of the bonds, and for the purpose of\ncreating a \"debt service reserve,\" shall be held in the sinking fund for that purpose. If the\ncollections from the first annual improvement assessment levy shall fail to produce a sum\nsufficient to provide a \"debt service reserve\" equal to twenty percent (20%) of future\naverage annual principal and interest requirements, the next annual improvement\nassessment shall be fixed at such level as may be calculated to restore the \"debt service\nreserve\" to such level after providing for current principal and interest maturities. The\ndebt service reserve requirement of a wastewater collection project by a metropolitan\nsewer district may be funded from the proceeds of the bonds.  If, at the time of any annual\nlevy of the improvement assessment, the sum held in the sinking fund as said \"debt\nservice reserve\" shall exceed the level herein specified, such excess may be taken into\naccount in fixing the rate of the improvement assessment for the ensuing y ear; and if the\namount so held in said \"debt service reserve\" is below said specified level, the next\nannual improvement assessment levy shall be increased in a corresponding manner. In\nmaking the improvement assessment levy for the year preceding the fina l maturity of\nbonds for any improvement project, the governing body may take into account, and make\nallowance for, the amount held in the sinking fund of the particular project as a \"debt\nservice reserve\"; and if in making such levy the governing body shal l miscalculate and\nprovide funds insufficient to pay the final maturing principal and interest, the governing\nbody shall be authorized to, and shall be required, to make a subsequent improvement\nassessment levy upon the benefited properties sufficient to m ake up the deficiency, with\ninterest to date of payment. If the procedures required by this chapter shall result in a\nsurplus after payment of the bonds, and all interest thereon to date of payment, such\nsurplus shall be refunded, pro rata, to the owners o f benefited properties, as determined at\nthe date such surplus is ascertained by the governing body to exist.","path":["KRS Chapter 107"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=27171","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:09Z","sha256":"d8ec57bbb0a7909d4dc0f9164ec9ab0184031e5de3d793e2e179ea5b5569d4e8","source_id":"us-ky","stale":false,"prev":"us-ky/krs-107.170","next":"us-ky/krs-107.190"},"notice":"GroundRules: Original legal text. Not legal advice."}