2010 Tennessee Code
Title 7 - Consolidated Governments
Chapter 82 - Utility Districts
Part 4 - Audit and Rates
7-82-403 - Rates sufficient to pay costs and retire bonds.

7-82-403. Rates sufficient to pay costs and retire bonds.

(a)  Except as provided in subsection (b), the board of commissioners of any district shall prescribe and collect reasonable rates, fees, tolls, or charges for the services, facilities and commodities of its system or systems, shall prescribe penalties for the nonpayment of the rates, fees, tolls, or charges, and shall revise such rates, fees, tolls or charges from time to time whenever necessary to ensure that such system or systems shall be and always remain self-supporting. The rates, fees, tolls or charges prescribed shall be such as will always produce revenue at least sufficient to:

     (1)  Provide for all expenses of operation and maintenance of the system or systems, including reserves for the expenses; and

     (2)  Pay when due all bonds and interest on the bonds, for the payment of which such revenues are or shall have been pledged, charged or otherwise encumbered, including reserves for the bonds and interest.

(b)  In any gas utility district and in counties having the following populations, according to the 1980 federal census or any subsequent federal census, the provisions of subsection (a) shall apply only if the district issues bonds pursuant to this chapter:

Click to view table.

[Acts 1937, ch. 248, § 14; C. Supp. 1950, § 3695.40 (Williams, § 3695.39); T.C.A. (orig. ed.), § 6-2625; Acts 1987, ch. 422, § 8; 1989, ch. 139, § 6; 1989, ch. 221, § 8.]