216.160 Sinking fund, operation and depreciation accounts to be provided -- Lease income. - Kentucky Statutes

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216.160 Sinking fund, operation and depreciation accounts to be provided -- Lease income. (1) On or before the issuance of the bonds the city legislative body shall, by ordinance, set aside and pledge the income of the municipal hospital into a separate and special
fund to be used and applied in payment of the cost, maintenance, operation and
depreciation of the hospital. The ordinance shall fix the amount of revenue
necessary to be set aside and applied to the payment of the principal and interest of
the bonds and the proportion of the balance of the income to be set aside as a proper
and adequate depreciation account. The remaining portion of the balance shall be
set aside for the reasonable and proper operation and maintenance of the hospital.
The rates to be charged for the use of the hospital and the services it renders shall be
fixed and revised from time to time 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 it becomes due, to provide for the operation and maintenance of the hospital,
and to provide an adequate depreciation account. (2) The municipality issuing bonds under KRS 216.100 may lease the facility built from the proceeds of said bonds to a hospital district created under KRS 216.310 et
seq. In that event the lease income from a lease agreement between the municipality
and the hospital district shall be sufficient to provide for the payment of interest
upon the bonds, to create a sinking fund to pay the principal thereof at or prior to
maturity, to accumulate proper reserves, and to pay the costs of operation and
insurance; or the lease may provide that the lessee shall pay the cost of insurance. History: Amended 1970 Ky. Acts ch. 145, sec. 1. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 3235i-9.