KRS 106.110: Pledge of income and revenue -- Form of resolution or ordinance.

At or before the issuance of the bonds the water district commissioners shall, by

resolution, or the city legislative body 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 payment of the cost thereof and in the maintenance, operation and depreciation

thereof. The resolution or 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 proportion of the balance of the income and revenues to be set aside

as a proper and adequate depreciation account, and the remaining proportion of such

balance shall be set aside for the reasonable and proper operation and m aintenance of the

waterworks. The rates to be charged for service from the waterworks shall be fixed and

revised from time to time so as to be sufficient to provide for payment of interest upon all

bonds and to create a sinking fund to pay the principal th ereof when due, and to provide

for the operation and maintenance of the waterworks and an adequate depreciation

account.