2014 Kentucky Revised Statutes CHAPTER 96 - UTILITIES IN CITIES 96.544 Issuance of bonds -- Use of proceeds of bonds -- Disposition of surplus revenue -- Bond procedure.
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96.544 Issuance of bonds -- Use of proceeds of bonds -- Disposition of
surplus revenue -- Bond procedure.
(1)
(2)
(3)
Except where an election has been held and the proposition has been
defeated, any city may borrow money and issue negotiable bonds, but only
after an ordinance has been adopted specifying the proposed undertaking, the
amount of bonds to be issued, and the maximum rate of interest the bonds are
to bear. The ordinance shall further provide that the proposed system, with
necessary appurtenances thereto, is to be acquired pursuant to the provisions
of KRS 96.541 to 96.546. Any bonds issued under the provisions of KRS
96.541 to 96.546 shall be payable solely from the revenue derived from the
operation of the artificial gas system, and shall not constitute an indebtedness
of the city within the meaning of the Constitution.
Money received from bonds issued as provided in subsection (1) of this section
may be used to advance the expense of operation and maintenance for one (1)
month after the establishment of the system. If a surplus is accumulated, from
revenue, in the operation and maintenance fund equal to the cost of
maintaining and operating the artificial gas system during the remainder of the
calendar, operating or fiscal year, as may be provided by ordinance on or
before issuance of the bonds, the legislative body of the city may at any time
transfer the excess to the depreciation account to be used for any
improvements or additions to the system.
Except as provided in subsection (2) of this section, all of the provisions of
KRS 96.380 to 96.500 shall be applicable to proceedings under KRS 96.541 to
96.546.
History: Created 1946 Ky. Acts ch. 68, sec. 4.
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