2013 Kentucky Revised Statutes CHAPTER 65 - GENERAL PROVISIONS APPLICABLE TO COUNTIES, CITIES, AND OTHER LOCAL UNITS 65.8921 Procedure for establishing or changing rates or charges for service.
Download as PDF
65.8921 Procedure for establishing or changing rates or charges for service.
(1)
(2)
(3)
The rates and charges to be assessed by the commission to its member
entities and other parties shall be the verified cost of providing the services as
prescribed in this section, and shall be allocated based on usage and the cost
of service. However, if continuity of consumer service or the preservation of
water quality is threatened by special circumstances affecting a public
wastewater utility, the commission may establish special rates for that entity for
a period not to exceed one (1) year so long as benefits to member entities are
not jeopardized and nonmembers are not adversely affected in any manner.
The commission shall establish wholesale charges, rates, and terms for its
services to its member entities and to any other party to which it provides
service under contract that are fair, just, and reasonable and shall be sufficient
at all times to:
(a) Pay the cost of operation and maintenance of any facility that it may own
or lease to provide wastewater services contracted to its member entities
or other parties;
(b) Pay the principal and interest on any bonds, loans, or other instruments
or obligations secured in the name of the commission; and
(c) Provide an adequate fund for renewals, replacements, and reserves.
The commission's procedure for establishing or changing rates and charges
levied on member entities and other parties that contract for service shall be as
follows:
(a) Every five (5) years, or more often if circumstances warrant, the
commission shall procure, pursuant to KRS 45A.343, 45A.345 to
45A.460, 45A.735, 45A.740, 45A.745, and 45A.750, the professional
consulting services of an independent accounting firm or individual
accountant qualified and experienced in conducting cost-of-service
studies. The commission shall invite the governing body of each member
entity to designate a special representative to participate in the consultant
selection process;
(b) The firm or individual selected in consultation with the commission's
designated engineers, operators, and other knowledgeable individuals
shall perform a cost-of-service study to:
1.
Determine the actual or probable cost of operating and maintaining
the commission's respective wastewater facilities;
2.
Determine the cost of servicing any associated debt obligations and
administrative costs;
3.
Devise a comprehensive cost allocation plan and recommend that
the commission establish and levy specific rates for treatment
services and appropriate charges for other services to offset these
costs; and
4.
Devise and recommend a standard method of formulary whereby
the commission may conduct regular financial analyses internally,
based on sound accounting policy, allowing for the application of
inflation indices and other equitable methods of determining service
rates;
(c)
(d)
(e)
The commission shall determine and set final rates and charges based
on and only after:
1.
The cost-of-service study and recommendations of the consultant
are received;
2.
Consultation with the governing bodies of member entities during
the cost-of-service study; and
3.
For a rate increase greater than five percent (5%), a vote approving
the final rate by a majority of the legislative bodies of the member
entities that comprise the wastewater commission or, in the case of
a special district or government agency, by the fiscal court of the
county that contains the district or agency, which shall take action
thirty (30) days after notice of the proposed final rate. Each
legislative body of a member entity, or fiscal court in the case of a
special district or government agency, shall have equal weight.
Absent a majority vote, rates shall remain provisional and must be
reset by the wastewater commission;
Initial rates and charges and any subsequent changes to rates and
charges of five percent (5%) or less shall be approved by the commission,
but not more than once in a twelve (12) month period. Increases above
five percent (5%) shall remain provisional until action by the legislative
bodies pursuant to paragraph (c) of this subsection; and
The commission shall provide not less than sixty (60) days' written notice
to the governing bodies of the member entities prior to the effective date
of any change in rates or charges for service, which shall remain
provisional until action by the legislative bodies of the member entities
pursuant to paragraph (c) of this subsection.
Effective:June 8, 2011
History: Created 2011 Ky. Acts ch. 98, sec. 11, effective June 8, 2011.
Disclaimer: These codes may not be the most recent version. Kentucky may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.