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