Kentucky Statutes 74.300 – Payment of bonds for additions — Operating and depreciation funds
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(1) All money derived from any bonds issued under KRS § 74.280 to KRS § 74.310 shall be applied solely for the construction or acquisition of the additions, extensions and appurtenances, or to advance the payment of interest on bonds during the first three (3) years following the date of issue of the bonds.
(2) At or before the issuance of such bonds the commission shall by ordinance set aside and pledge the income and revenue of the waterworks into a separate and special fund to be used and applied in the payment of the cost of the additions, extensions or appurtenances and the maintenance, operation and depreciation thereof. The ordinance shall definitely fix and determine the amount of revenue that is necessary to be set apart and applied to the payment of the principal and interest of the bonds, and the proportion of the balance of such income and revenue that is to be set aside as a proper and adequate depreciation account. The balance shall be set aside for the operation and maintenance of the waterworks. The rates to be charged for the service from the waterworks shall be sufficient to provide for the payment of interest upon all bonds and to create a sinking fund to pay the principal when due, and to provide for the operation and maintenance thereof and an adequate depreciation account.
(3) If there is a surplus in the operating and maintenance fund equal to the cost of maintaining and operating the waterworks during the remainder of the current calendar or fiscal year, and during the next calendar or fiscal year, the commission may at any time transfer any excess over that amount to the depreciation account.
(4) The funds in the depreciation account shall be expended in balancing depreciation in the waterworks or in making new constructions, extensions or additions thereto. The funds may be invested as the commission designates and the income from investments shall be credited to the depreciation account.
Effective: October 1, 1942
History: Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky.
Stat. sec. 938g-28 (1933 Supplement).
(2) At or before the issuance of such bonds the commission shall by ordinance set aside and pledge the income and revenue of the waterworks into a separate and special fund to be used and applied in the payment of the cost of the additions, extensions or appurtenances and the maintenance, operation and depreciation thereof. The ordinance shall definitely fix and determine the amount of revenue that is necessary to be set apart and applied to the payment of the principal and interest of the bonds, and the proportion of the balance of such income and revenue that is to be set aside as a proper and adequate depreciation account. The balance shall be set aside for the operation and maintenance of the waterworks. The rates to be charged for the service from the waterworks shall be sufficient to provide for the payment of interest upon all bonds and to create a sinking fund to pay the principal when due, and to provide for the operation and maintenance thereof and an adequate depreciation account.
Terms Used In Kentucky Statutes 74.300
- Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
- Remainder: An interest in property that takes effect in the future at a specified time or after the occurrence of some event, such as the death of a life tenant.
- Year: means calendar year. See Kentucky Statutes 446.010
(3) If there is a surplus in the operating and maintenance fund equal to the cost of maintaining and operating the waterworks during the remainder of the current calendar or fiscal year, and during the next calendar or fiscal year, the commission may at any time transfer any excess over that amount to the depreciation account.
(4) The funds in the depreciation account shall be expended in balancing depreciation in the waterworks or in making new constructions, extensions or additions thereto. The funds may be invested as the commission designates and the income from investments shall be credited to the depreciation account.
Effective: October 1, 1942
History: Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky.
Stat. sec. 938g-28 (1933 Supplement).