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220.440 Sinking, operating and depreciation funds to be provided.
At or before the issuance of the bonds, the board of directors of the district shall, by
resolution, set aside and pledge the revenue derived from services rendered by its sanitary
works into a separate and special fund to be used and applied in the payment of the cost,
maintenance, operation and depreciation of the works. The resolution 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 proportion of the balance of the revenue
to be set aside as a proper and adequate depreciation fund. The remaining portion of the
balance shall be set aside for reasonable and proper operation and maintenance of the
works, except as provided in KRS 220.450. The rates to be charged for the service from
the works shall be fixed and revised from time to time, in accordance with the provisions
of KRS 220.510, 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 due, to provide for the operation
and maintenance of the works, and to provide an adequate depreciation account.
Effective: October 1, 1942
History: Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky.
Stat. sec. 2062g-45.
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