(A) (1) The laying of sidewalks of the city, including curbing and guttering, shall be done as from time to time, designated at the exclusive costs of the owners of the real estate abutting on such improvements to be apportioned among and assessed upon the lots or parcels of real estate, and a tax shall be levied upon such lots or parcels or real estate for the payment of the costs assessed thereon, which tax shall be due and payable to the City Treasurer upon the completion of the work and the acceptance thereof by the City Council, unless the ten-year payment is accepted by the property owners as hereinbefore provided. Any tax which is not paid within 30 days after the same becomes due shall have added thereto a penalty of 6% per annum.
(2) There shall be a first and superior lien taking precedence over all other liens upon such lots or parcels of real estate for the part of the cost of such improvement so assessed thereon and the same shall bear interest at the rate of 6% per annum from the date of assessment until paid, if the same be not paid within the 30 days hereinbefore mentioned.
(B) Any assessment for any sidewalk or other improvement as hereinbefore set out, which shall be ordered by the City Council, which assessment shall exceed one-half of the value of the lots or parcels of real estate upon which the assessment is made, shall be void as to such excess, but the improvement shall be taken into consideration in fixing the value of such real estate and the City Council shall provide for the payment of any such excess out of the General Fund.
(C) The improvements ordered pursuant to this section are to be made by the city unless by special ordinance, the same are let by contract, and all taxes or assessments for the same shall be paid to the City Treasurer. The City Clerk shall carefully keep a separate account of the funds arising from assessments for each particular improvement and no proceeds arising from assess merits for one improvement shall be diverted to the payment of any other improvement whatever. The proceeds shall in each case constitute a separate special fund for the payment of the particular work for which the assessment is made, or for the security and payment plan provided pursuant to this section, records of said assessment open to public inspection shall be kept by the City Clerk as provided by statute.
(D) (1) After the improvement shall have been completed and accepted and the cost thereof apportioned to, and a tax therefor levied thereon as hereinbefore provided, the City Treasurer shall give notice by one publication in the newspaper or general circulation published in such city, requiring all persons to pay the local taxes levied upon their property within 30 days from the publication of the ordinance, accepting the work and assessing the cost thereof.
(2) Such local taxes may, at the option of the property owners, be paid in cash without interest within 30 days from the publication of the ordinance accepting the work and assessing the cost thereof, or in ten annual installments as provided in this section.
(E) (1) Any property owner who desires to exercise such privilege or payment to be in installments shall, before the expiration of said 30 days, enter into an agreement in writing with the city that in consideration of such privilege, he or she shall make no objection to any illegality or irregularity with regard to the taxes or assessments against said property and that he or she will pay the same in the manner provided in this section with specified interest, said agreements to be filed and recorded in the city Clerk’s office. When the property owner is an infant or person of unsound mind, said agreement may be executed by a guardian or committee, or by a life tenant if the same be so owned, and have the same effect as if executed by a person free from disability or the owner of the fee.
(2) When no such agreements are filed within the time limit, the entire tax shall be payable in cash and if not paid within 30 days and shall bear interest at the rate of 6% per annum from the date of publication of the ordinance assessing and levying the same.
(F) In cases where option to pay in installments is exercised the local tax with interest at the rate of 6% per annum, it shall be payable as follows:
(1) One-tenth of the tax with interest on the entire tax at the time fixed for the payment of general city taxes occurring next after the expiration of the 30 days allowed for the payment in cash annually, thereafter one-tenth of the entire tax until the whole is paid;
(2) At the end of each six months from the time the first installment of the tax becomes due, the interest shall be due and payable for such six months on all unpaid installments of the tax; provided, that any persons may at any interest paying period after the fifth annual installment of his or her tax becomes due pay the entire assessment of tax against his or her property with accrued interest; and
(3) All installments of such special assessments and interest shall be placed upon the tax duplicate with other taxes of persons, liable for such special assessments, and the tax bill for such special assessment may in addition to other remedies given by statute, be sold, and collection thereof in the manner provided by law for collection of city taxes.
(G) (1) In default of payment of any installment of tax or interest, for one month after the same becomes due, a penalty of 6% of the installment in arrears shall be added thereto which shall constitute a like lien as the tax, and all unpaid installments of the tax shall, at the option of the city or any bond holder whose bonds or interest thereon are in default of payment forthwith, become due and payable. It shall be the duty of the Treasurer upon order of the City Council to promptly apply all money paid on such installments of the payment of the bonds and coupons which may be issued as provided in next section in anticipation of the collection of such local taxes.
(2) If the fund accumulated from the collection of assessments, interest, and penalties for any particular improvement be more than sufficient to pay the principal and interest of the bond issued in anticipation of such collection, there shall be made a ratable reduction from the last installment of each person’s assessment. Should there be any deficit, provision for payment of the same shall be made out of the General Fund.
(3) Failure on the part of the city to collect any such local tax or installment thereof when due, shall create no liability against the city, but the owners of the bond or person entitled to said tax shall have the right to enforce the lien for unpaid assessments in any court of competent jurisdiction, recovering interest and costs and may have proceeds of the property applied in settlement thereof. Any railroad company liable for any improvement tax shall be entitled to the provisions of the section with reference thereto and exercise of such privilege as other property owners.
(H) In order to provide a fund for the immediate payment of the cost of any improvement made on the installment payment loan as provided in the preceding provision, there may be issued and sold improvement bonds in anticipation of such part of the local taxes assessed and levied therefor as may not be paid within 30 days from the time of the assessment, pledging such taxes and the liens on the property for the payment of the principal and interest of such bonds and applying the proceeds thereof exclusively to the payment of the particular improvement in anticipation of the assessments for which the bonds are issued.
(I) Such bonds shall bear the date of the publication of the assessing ordinance and shall be made payable to bearer. The bonds for each separate improvement shall be numbered consecutively throughout and shall be divided into ten series as nearly equal as possible, the first series including the lowest numbers and so on. The bond with interest shall be payable at the City Treasurer’s office as follows.
(1) The first series with accrued interest on all series shall be due and payable one month after the date on which the first installment of the tax becomes due as provided in the preceding provision, and the remaining series shall be due and payable one each year annually thereafter for nine years.
(2) Interest on all unpaid bonds shall be due and, payable semi-annually, at the end of each six months from the time of the first interest becomes due. The bonds shall be of the denomination of $100 or its multiple; provided, that every odd amount over $100 or its multiple may be included in the last bond to mature. No bond shall be issued for less than $100 unless the total amount for which the bonds are issued for any particular improvement is less than $1,000.
(3) All improvement bonds shall have the name of the street or other public way or part thereof for the improvement of which they are issued, printed, engraved, or written thereon and shall state the character of improvement. They shall bear interest at a rate not exceeding 6% per annum from the date of assessment of tax and shall have suitable coupons attached thereto, evidencing the semi-annually interest. The bonds or coupons shall be signed by the Mayor and counter signed by the Treasurer but the coupons may be singed by lithograph. The Clerk shall attest the signatures to the bonds under seal of the city.
(J) The bonds and interest shall be payable exclusively out of funds actually paid to and collected by the city on account of the improvement taxes in anticipation of which the bonds are issued, but the faith and credit of the city shall not be pledged for the payment of said bonds or interest and the city shall, in no event, be liable on any such bond except to the extent of funds actually paid to it as above set out. And all bonds so issued shall be subject to all the rights and privileges specifically set forth in KRS 3459, Act of March 7, 1916 applicable to such bond.
(K) This section shall take effect from and after its final passage and approval by the Mayor.
(Ord. 19, passed 1-1-1925)