(A) Recitals and authorization. The lessee hereby approves the lease agreement (the “lease”), in substantially the form presented to this governing body. The recitals to this section are incorporated herein as if set forth in this division in their entirety and are hereby found and determined to be true and correct. It is further found and determined that the project identified in the lease is public property to be used for public purposes, that it is necessary and desirable and in the best interests of the lessee to enter into the lease for the purposes therein specified, and the execution and delivery of the lease and all representations, certifications and other matters contained in the closing memorandum with respect to the lease, or as may be required by the lessor prior to delivery of the lease, are hereby approved, ratified and confirmed. The Judge/Executive and Fiscal Court Clerk of the lessee are hereby authorized to execute the lease, together with such other agreements or certifications which may be necessary to accomplish the transaction contemplated by the lease.
(B) General obligation pledge. Pursuant to the constitution of the commonwealth and KRS Ch. 66, as amended (the “general obligation statutes”), the obligation of the lessee created by the lease shall be a full general obligation of the lessee and, for the prompt payment of the lease payments, the full faith, credit and revenue of the lessee are hereby pledged. During the period the lease is outstanding, there shall be and there hereby is levied on all the taxable property in the lessee, in addition to all other taxes, without limitation as to rate, a direct tax annually in an amount sufficient to pay the lease payments on the lease when and as due, it being hereby found and determined that current tax rates are within all applicable limitations. Said tax shall be and is hereby ordered computed, certified, levied and extended upon the tax duplicate and collected by the same officers in the same manner and at the same time that taxes for general purposes for each of said years are certified, extended and collected. Said tax shall be placed before and in preference to all other items and for the full amount thereof; provided, however, that in each year to the extent that the other taxes of the lessee are available for the payment of the lease payments and are appropriated for such purpose, the amount of such direct tax upon all of the taxable property in the lessee shall be reduced by the amount of such other taxes so available and appropriated.
(C) Sinking fund. There is hereby established, or it is acknowledged that there has heretofore been established, with the lessee a sinking fund (the “sinking fund”). The funds derived from said tax levy hereby required or other available taxes shall be placed in the sinking fund and, together with interest collected on the same, are irrevocably pledged for the payment of all obligations issued under the general obligation statutes and all tax supported leases, as defined in the general obligation statutes, including the lease herein authorized, when and as the same fall due. Amounts shall be transferred from the sinking fund to the lessor at the times and in the amounts required by the lease.
(D) Administration of the lease. The Kentucky Association of Counties Leasing Trust is hereby acknowledged to be the program administrator under the lease.
(E) Severability. If any division, paragraph or provision of this subchapter shall be held to be invalid or unenforceable for any reason, the invalidity or unenforceability of such division, paragraph or provision shall not affect any of the remaining provisions of this section.
(F) Open meetings law. This governing body hereby finds and determines that all formal actions relative to the adoption of this section were taken in an open meeting of this governing body, and that all deliberations of this governing body and of its committees, if any, which resulted in formal action, were in meetings open to the public, in full compliance with applicable legal requirements.
(G) Conflicts. All ordinances, resolutions, orders or parts thereof in conflict with the provisions of this section are, to the extent of such conflict, hereby repealed and the provisions of this section shall prevail and be given effect.
(Ord. 4-2020, passed 10-1-2020)