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(A) In order that the city may provide funding for a project, described and identified as the maintenance, repair, improvement, overlay, building, reconstruction and replacement of public streets and roads in the city that have been accepted by the city for maintenance, including the widening thereof and the repair, maintenance, improvement, and addition of curbs, sidewalks, gutters, pipes and catch basins, commencing in the fiscal year 2007-2008 and continuing during each fiscal year thereafter, there is hereby levied a special ad valorem tax annually at the rate of $.132 on each $100 of assessed valuation on all taxable property within the city, which tax is deemed and found by the City Council to be sufficient to defray the cost of the project. The tax for the year 2008 shall be based upon the assessed valuation of all taxable property within the city as of January 1, 2008, and in all succeeding years the tax shall be based upon the assessed valuation of all taxable property within the city as of January 1 of that year.
(B) The tax revenues generated by the special ad valorem tax shall be in addition to other taxes imposed by the city, and shall be used solely for the project. The special ad valorem tax shall be due at the same time and be collected in the same manner, from time to time in effect, as are other ad valorem taxes levied by the city. Taxes not paid shall be subject to the same interest, penalty and cost of collection expenses, from time to time in effect, as are other ad valorem taxes levied by the city.
(C) There is hereby created a separate fund to be known as the Street Fund (hereinafter sometimes referred to as the Fund), into which shall be transferred and set aside the proceeds of the special ad valorem tax. All proceeds of the Fund shall be kept apart from other funds of the city, and shall be accounted for separately. The proceeds in the Fund shall be invested in accordance with applicable law, and all income derived therefrom shall be carried to the credit of the Fund and shall become a part of the proceeds of the Fund. The proceeds constituting the Fund shall not be disbursed, expended, pledged, encumbered or transferred for any use or purpose other than provided by this section. Any proceeds remaining in the Fund at the end of any fiscal year shall remain in the Fund and be carried over to the succeeding fiscal year for use as provided by this section.
(D) To the extent permitted under and in accordance with the Constitution of the Commonwealth of Kentucky and other applicable laws and regulations, proceeds anticipated to be derived, and the proceeds held in the Fund so derived, from the special ad valorem tax levied hereunder may be pledged, encumbered and/or expended to pay the principal and interest on any indebtedness incurred, including bonds issued, by the city to carry out and perform the project.
(E) In any fiscal year in which the City Council determines that the full amount of the special ad valorem tax levied hereunder is not necessary to fund the project, the city may by ordinance in any fiscal year reduce the rate of the special ad valorem for such year below the amount set forth herein. In any fiscal year following the fiscal year for which the special ad valorem tax rate may have been reduced by ordinance, the special ad valorem tax rate shall revert to the maximum amount as set forth in this section unless reduced for such subsequent year by ordinance.
(Ord. 1570-2007, passed 11-13-07)