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96.182 Application of funds derived from operations -- Use of surplus.
Subject to the provisions of outstanding bonds and contracts, the board shall apply
all funds derived from operations: (1) to the payment of operating expenses, (2) to
the payment of bond interest and retirement, (3) to sinking fund requirements, (4) to
the maintenance of a fund to meet depreciation and the improvements and
extension of the plant in an amount equal to six percent (6%) of the undepreciated
book value of its property, (5) to the maintenance of a cash working fund equal to
one (1) month's revenue, (6) to the payment of other obligations incurred in the
operation and maintenance of the plant and the furnishing of service, and (7) such
taxes, if any, as the board may elect to pay under the provisions of KRS 96.179, and
any surplus revenues at the end of any twelve (12) months ending June 30 shall be
transferred to the sinking fund, and used by the board only for the redemption or
purchase of outstanding bonds, in which case such bonds shall be canceled, or for
the creation and maintenance of a cash working fund, or the creation and
maintenance of a fund for improvement and extension of the system, or for the
reduction of rates, or the board, after the original cost of the property shall have
been fully paid and satisfied may, in its sole discretion, use, apply and pledge all or a
part of such surplus revenues for the acquisition, construction, maintenance,
improvement, addition to and operation of any "public project" as the same is
defined in subsection (1) of KRS 58.010, or for the purpose of purchasing, paying,
retiring, guaranteeing the payment of or underwriting revenue bonds issued by the
city or any agency thereof to finance the acquisition, construction, maintenance,
improvement, addition to and operation of such "public project," which "public
project" shall be located within the territory served by the board; the board is hereby
vested with all of the powers, duties and responsibilities delegated and granted to a
"governmental agency" under KRS 58.020 to 58.140, both inclusive; provided,
however, that the acquisition or construction of any "public project" as above
defined, shall be first approved by the common council before such "public project"
is undertaken.
History: Amended 1954 Ky. Acts ch. 249, sec. 1. -- Amended 1952 Ky. Acts
ch. 44, sec. 4. -- Created 1946 Ky. Acts ch. 212, sec. 14.
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