McCormick, 032919 KYAGO, AGO OAG19-4

• Case Date: March 29, 2019
• Court: Kentucky

Ronald W. McCormick Chairman AGO OAG19-4 No. OAG19-004 Kentucky Attorney General Opinions Commonwealth of Kentucky Office of the Attorney General March 29, 2019          Subject: Whether subdistrict surcharges for a water line extension project are assessments as prohibited in KRS 262.850(11).          Requested by: Ronald W. McCormick Chairman, Campbell County Conservation District Gailen Bridges Chairman, Kenton County Conservation District Kristin Scott Chairman, Boone County Conservation District          Written by: Sarah Ellen Eads Adkins, Assistant Attorney General          Syllabus: The "water bill" surcharges in question are not exempt according to KRS 262.850(11).          Statutes construed: KRS 262.850; KRS 74.177; KRS 262.748; KRS 262.765; KRS 262.779           OPINION OF THE ATTORNEY GENERAL          Chairmen for the Conservation Districts in Campbell, Boone, and Kenton County request an opinion of this office, clarifying the language in KRS 262.850(11), which provides, in part, "[t]he owners of land within the boundary of an agricultural district shall be exempt under KRS 74.177 from any assessment." They ask specifically what the meaning of assessment is as used in this statute and whether surcharges on their water bills qualify as assessments. As explained more fully below, we conclude that these surcharges are not assessments because they are not tied to the value of the land.          Before rendering this opinion, this office spoke with Ronald W. McCormick, Chairman of the Campbell County Conservation District. The Conservation Districts have already posed the same question to the Northern Kentucky Water District, the Legislative Research Commission, and the Campbell County Attorney, Steven J. Franzen. At our request, they forwarded these responses to this office.          According to the requestors, farmers who are located in Agricultural Districts are being charged "subdistrict surcharges" on their water bills for a water-line extension project. The Chairmen included a portion of a Public Service Commission ("PSC") rate approval opinion, which approved subdistrict...