(A) The political subdivision shall pay into the contribution fund established by KRS 61.470, with respect to wages as defined in KRS 61.420, at such time or times as the state agency may by regulation prescribe, contributions equivalent to the sum of the taxes which would be imposed by 26 USC 1401 or 3101, if the services covered by this plan and agreement constituted employment as defined in 26 USC 3121 or 3306.
(B) (1) The political subdivision agrees to levy a tax on all property assessed for taxation by the political subdivision for each and every year this contract shall be and remain in force, which levy shall be sufficient in itself, or when added to any balance remaining from previous levies, to insure the payment of the obligations of the political subdivision to the state agency imposed by this contract for the ensuing fiscal year; and the payment of such obligations shall be specifically provided for in the political subdivision's budget for each and every year this agreement shall be and remain in force. In determining the rate of taxation for such annual levies, the political subdivision shall anticipate the collection of taxes in an amount not to exceed 90% of the levy. All collections pursuant to said levy shall be covered into a revolving fund, to be created by the political subdivision, which shall be devoted exclusively to the payment of the obligations imposed under this contract, as and when the same shall become due and payable, until all of such obligations shall have been satisfied in full.
(2) Provided, however, for the last six months of the fiscal year commencing January 1, 1951 and ending December 31, 1951, or for any subsequent full fiscal year hereunder, the foregoing requirements of this division may be dispensed with by the political subdivision paying in advance into its revolving fund an amount of money sufficient to meet the combined employer-employees contributions for such fiscal year.
(C) The political subdivision agrees to and shall advance to the contribution fund, provided for in KRS 61.470, an amount equal to the average quarterly contributions provided for in division (A) of this section plus 10% thereof, which shall be credited to the political subdivision in the contribution fund account. The average quarterly contribution shall be arrived at in the first instance by a fair estimate based on the payroll for the previous calendar year; provided, however, that said advancement may be adjusted from time to time as the state agency may require, and when adjusted the estimate shall be based on the payroll for the calendar quarter immediately preceding the date of the adjustment. The advancement provided for herein may be used by the state agency to offset any unpaid financial obligation incurred by the political subdivision hereunder, and for no other purpose, and may be applied thereto summarily, but such use shall not relieve the political subdivision of such obligation to the state agency; provided, however, no advancement by the political subdivision shall be applied to the default of any other political subdivision.
(D) The political subdivision shall pay to the state treasury, at such time or times as the state agency may by regulation prescribe, an amount equal to the political subdivision's share of the cost of administration of the state agency, such amount to be not greater than 5% of the contributions made by the political subdivision under division (A) of this section.
(E) The political subdivision agrees that it shall impose upon each of its employees, as to services which are covered by this plan and agreement, a contribution with respect to his wages, not exceeding the amount of the tax which would be imposed by 26 USC 3101 if such services constituted employment within the meaning of that statute, and to deduct the amount of such contribution from his wages as and when paid. It is further understood that the contributions so collected shall be paid into the contribution fund in partial discharge of the liability of the political subdivision, but that failure to make such deductions shall not relieve the employee or the political subdivision from liability therefor.
('79 Code, § 2-130) (Ord. A-25, passed 9-18-51)