96.535 Water plant or electric light, heat and power plant of second or third-class city -- Maintenance, operation and depreciation funds for -- Payment of surplus to general fund of city -- Fair retu - Kentucky Statutes

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96.535 Water plant or electric light, heat and power plant of second or third-class city -- Maintenance, operation and depreciation funds for -- Payment of
surplus to general fund of city -- Fair return on property. (1) At the time or before or after the issuance of revenue bonds for the acquisition, extension or maintenance of a system of waterworks or electric light, heat and
power plants in cities of the second and third classes, which bonds do not represent
the general obligation of the city, the city legislative body shall, by ordinance, set
aside and pledge the income and revenue of any such municipally owned utility into
a separate and special fund to be used and applied in the payment of the cost
thereof, and in the maintenance, operation and depreciation thereof, and for the
purposes hereinafter set out. The ordinance shall definitely fix and determine the
amount of revenue necessary to be set apart and applied to the payment of the
principal and interest of the bonds, and the portion of the balance of the income and
revenue to be set aside as a proper and adequate depreciation account, and the
portion to be set aside for the reasonable and proper operation and maintenance of
the utility, and may provide that the surplus not needed for the purposes aforesaid
shall be paid over to and become a part of the general funds of such city. The rates
to be charged for services from the utility shall be fixed and revised from time to
time by the board appointed to operate the utility by and with the approval of the
legislative body of the city so as to be sufficient to provide for the payment of
interest upon all bonds and to create a sinking fund to pay the principal thereof
when due; to provide for the operation and maintenance of the utility and an
adequate depreciation account; and such rates may be fixed as will furnish a fair and
reasonable return to the municipality on the fair value of the used and useful
property of the utility. (2) Nothing in this section shall apply to electrical plants acquired or operated under provisions of KRS 96.550 to 96.900. History : Created 1944 Ky. Acts ch. 28, sec. 1.