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74.480 Exclusive water supply -- Basis for establishing rate, charges.
(1)
(2)
When a commission has been created, the cities, water associations, water
districts, or federal agencies represented by the commission shall contract with
the commission for water and the contracts may provide that the sources of
supply of water of the commission shall be the exclusive water supply for the
respective water distribution systems. These cities, water associations, or
water districts shall establish charges and rates for water supplied by them to
consumers sufficient at all times:
(a) To pay the principal of and interest on all outstanding obligations of the
cities, water associations, or water districts which by their terms are
payable in any manner from the revenues of their respective waterworks
distribution systems; and
(b) To pay the cost of operation and maintenance of their respective
waterworks distribution systems, including the payments to be made to
the commission pursuant to contracts for the purchase of water by those
cities, water associations, or water districts.
The commission shall establish charges and rates for water supplied to those
cities, water associations, water districts, or federal agencies represented by
the commission sufficient at all times:
(a) To pay the principal of and interest on the revenue bonds issued by the
commission under the provisions of KRS 74.420 to 74.520;
(b) To pay the cost of operation and maintenance of the sources of supply of
water; and
(c) To provide an adequate fund for renewals, replacements, and reserves.
Contracts entered into between the commission and the cities, water
associations, or water districts shall include covenants for the establishment of
rates and charges as provided in this section.
Effective:June 24, 2003
History: Amended 2003 Ky. Acts ch. 167, sec. 7, effective June 24, 2003. -Amended 1996 Ky. Acts ch. 122, sec. 7, effective July 15, 1996. -- Created 1960
Ky. Acts ch. 207, sec. 7, effective June 16, 1960.
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