2014 Kentucky Revised Statutes CHAPTER 96 - UTILITIES IN CITIES 96.535 Water plant or electric light, heat and power plant of city with population of 8,000 or more -- Maintenance, operation and depreciation funds for -- Payment of surplus to general fund of city -- Fair return on property.
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96.535
Water plant or electric light, heat and power plant of city with
population of 8,000 or more -- Maintenance, operation and depreciation
funds for -- Payment of surplus to general fund of city -- Fair return on
property.
(1)
(2)
At the time or before or after the issuance of revenue bonds for the acquisition,
extension or maintenance of a system of waterworks or electric light, heat and
power plants in cities with populations equal to or greater than eight thousand
(8,000) based upon the most recent federal decennial census, which bonds do
not represent the general obligation of the city, the city legislative body shall, by
ordinance, set aside and pledge the income and revenue of any such
municipally owned utility into a separate and special fund to be used and
applied in the payment of the cost thereof, and in the maintenance, operation
and depreciation thereof, and for the purposes hereinafter set out. The
ordinance shall definitely fix and determine the amount of revenue necessary
to be set apart and applied to the payment of the principal and interest of the
bonds, and the portion of the balance of the income and revenue to be set
aside as a proper and adequate depreciation account, and the portion to be set
aside for the reasonable and proper operation and maintenance of the utility,
and may provide that the surplus not needed for the purposes aforesaid shall
be paid over to and become a part of the general funds of such city. The rates
to be charged for services from the utility shall be fixed and revised from time to
time by the board appointed to operate the utility by and with the approval of
the legislative body of the city so as to be sufficient to provide for the payment
of interest upon all bonds and to create a sinking fund to pay the principal
thereof when due; to provide for the operation and maintenance of the utility
and an adequate depreciation account; and such rates may be fixed as will
furnish a fair and reasonable return to the municipality on the fair value of the
used and useful property of the utility.
Nothing in this section shall apply to electrical plants acquired or operated
under provisions of KRS 96.550 to 96.900.
Effective:January 1, 2015
History: Amended 2014 Ky. Acts ch. 92, sec. 173, effective January 1, 2015. -Created 1944 Ky. Acts ch. 28, sec. 1, effective January 1, 2015.
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