2014 Kentucky Revised Statutes CHAPTER 74 - WATER DISTRICTS 74.395 Financing of an expansion of water district system -- Plan for expansion project -- Applicability.
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74.395 Financing of an expansion of water district system -- Plan for
expansion project -- Applicability.
(1)
(2)
(3)
(4)
A water district organized under this chapter may elect to finance all or part of
an expansion of its system by adding a temporary surcharge to the rates
charged for service. All funds so collected shall be set apart in a reserve trust
account, shall be invested in securities issued or guaranteed by the United
States government until they are needed, and shall be expended, together with
any interest or other earnings, solely for the expansions or extensions specified
in the plan described under subsection (2) of this section. If construction has
not begun five (5) years after the surcharge is implemented, all funds so
collected shall be returned to the water district customers, together with interest
and earnings. This section shall constitute an additional or alternate method of
financing expanded facilities, and shall not repeal or reduce any existing rights
or duties of a water district.
A water district which elects to establish a reserve trust account under this
section shall develop a plan for the expansion project or projects to be financed
from the reserve, which shall include the design and estimated cost of each
element of the expansion, a time schedule for each step in the project, the
proposed financing, and the amount of surcharge to water district rates needed
to collect the amounts to be financed out of district reserves. After approval by
the board of commissioners, the plan and proposed rates shall be submitted to
the Public Service Commission. The commission, after a public hearing, shall
issue an order approving, modifying or rejecting the plan. If a plan is approved,
the commission shall establish a reasonable surcharge to implement the plan
to be collected for a period no longer than five (5) years. The commission shall
require the district to maintain its records in such a manner as will enable it, or
the commission or its customers, to determine the amounts to be refunded and
to whom they are due in the event that surcharge amounts shall be refunded.
The water district may, with the approval of the commission, amend its plan to
reflect subsequent developments or new information, but the changes shall not
violate the intent of the initial plan.
The provisions of this section also shall apply to water associations organized
under KRS Chapter 273.
Effective:July 15, 1988
History: Created 1988 Ky. Acts ch. 323, sec. 1, effective July 15, 1988.
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