74.300 Payment of bonds for additions -- Operating and depreciation funds. - Kentucky Statutes

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74.300 Payment of bonds for additions -- Operating and depreciation funds. (1) All money derived from any bonds issued under KRS 74.280 to 74.310 shall be applied solely for the construction or acquisition of the additions, extensions and
appurtenances, or to advance the payment of interest on bonds during the first three
(3) years following the date of issue of the bonds. (2) At or before the issuance of such bonds the commission shall by ordinance set aside and pledge the income and revenue of the waterworks into a separate and special
fund to be used and applied in the payment of the cost of the additions, extensions
or appurtenances and the maintenance, operation and depreciation thereof. The
ordinance shall definitely fix and determine the amount of revenue that is necessary
to be set apart and applied to the payment of the principal and interest of the bonds,
and the proportion of the balance of such income and revenue that is to be set aside
as a proper and adequate depreciation account. The balance shall be set aside for the
operation and maintenance of the waterworks. The rates to be charged for the
service from the waterworks shall be sufficient to provide for the payment of
interest upon all bonds and to create a sinking fund to pay the principal when due,
and to provide for the operation and maintenance thereof and an adequate
depreciation account. (3) If there is a surplus in the operating and maintenance fund equal to the cost of maintaining and operating the waterworks during the remainder of the current
calendar or fiscal year, and during the next calendar or fiscal year, the commission
may at any time transfer any excess over that amount to the depreciation account. (4) The funds in the depreciation account shall be expended in balancing depreciation in the waterworks or in making new constructions, extensions or additions thereto.
The funds may be invested as the commission designates and the income from
investments shall be credited to the depreciation account. Effective: October 1, 1942
History: Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 938g-28 (1933 Supplement).