KRS 220.135: Boundaries of multicounty districts -- Assumption by district of city

systems effective July 1, 1995 -- City's option not to be assumed -- Dissolution

of municipal subdistricts -- Effects of assumptions and dissolutions --

Uniformity of district rates.

(1) Notwithstanding the provisions of KRS 220.080, the jurisdictional boundaries of a

sanitation district organized or operating under KRS Chapter 220 shall be

coextensive with the jurisdictional boundaries of the counties it was organized to

serve if the district was organized to serve two (2) or more counties, and no other

district has been organized to serve the counties. All cities of the home rule class

located in a county which is part of a sanitation district as described in this section

shall be included in the jurisdictional boundaries of the sanitation district.

(2) (a) Effective July 1, 1995, the operational sewer and drainage system of each city

located within the jurisdictional boundaries of the district, together with all

assets, other than cash accounts, and liabilities of the system, as of January 1,

1994, including but not limited to, sewers, easements, manholes, pumping

stations, force mains, and real property, shall become the property, personal

and real, of the sanitation district.

(b) If funds in a cash account are in escrow or otherwise contractually connected

to a certificate of indebtedness related to the sewer and drainage system, the

funds shall become the property of the district. If funds in a cash account are

derived from a sew er user fee or sanitation bill surcharge, the city may use

them to reduce its obligation to the district created by subsection (5)(a) of this

section, or the city may return the funds to the citizens. If the funds in a cash

account were generated from a ge neral fund source and are not in escrow or

otherwise obligated, the city may retain the funds for its own purposes.

(3) Any city within the jurisdictional boundaries of the district may, before September

1, 1994, state by ordinance its intention not to bec ome a part of the district. In this

case, the provisions of subsection (2) of this section shall not apply, and the city

shall retain ownership and control of and responsibility for its sewer and drainage

system. The city shall be solely responsible for co mpliance with applicable

regulations promulgated by the Energy and Environment Cabinet.

(4) Any municipal subdistrict established prior to July 15, 1994, shall be dissolved

effective July 1, 1995, and the assets and liabilities of the subdistrict, as of Ja nuary

1, 1994, shall become the property, personal and real, of the sanitation district,

unless the city, no later than September 1, 1994, provides by ordinance that the

municipal subdistrict shall revert to the city. If the city provides for the reversion of

the subdistrict to the city, the assets and liabilities of the subdistrict shall become

the property, personal and real, of the city. The city shall be solely responsible

thereafter for compliance with applicable regulations promulgated by the Energy

and Environment Cabinet.

(5) (a) When a municipal subdistrict is dissolved pursuant to subsection (4) of this

section, or a city sewer and drainage system is transferred pursuant to

subsection (2) of this section, and its assets are transferred to the distr ict, the

city, or municipal subdistrict, shall pay the district fifty percent (50%) of the

cost of necessary repairs to its facilities as identified through the district's

sanitary sewer inspection program. These costs shall be payable upon

completion of t he repairs identified by the district, and may be paid by lump

sum or in installments over a period of time agreeable to the city or the

municipal subdistrict and the district.

(b) A city may continue its sewer maintenance surcharge until the accumulated

principal plus interest thereon is sufficient to pay the charges levied by the

district pursuant to paragraph (a) of this subsection.

(c) Any county that joins the district after July 15, 1994, may levy sewer

surcharges or other fees, which shall be added to the customers' district bill for

the purpose of enabling the county to pay pre -existing obligations to the

district.

(d) For a period of ten (10) years, the district may grant to each city or county a

credit for each new residential customer added which shall not exceed three

hundred dollars ($300) against the debt created by subsection (5)(a) of this

section, or any other contractual liability pre -existing on June 30, 1994. The

district may adopt a general policy establishing a credit of a different amou nt

for each new nonresidential customer added.

(6) (a) After July 15, 1994, no new package sewage treatment plant shall be

constructed or begin operation within the jurisdictional boundaries of the

district unless the district, after review of the plans fo r construction and

operation of the plant, approves the plans.

(b) After January 1, 1995, no privately owned package sewage treatment plant

shall operate within the jurisdictional boundaries of the district unless it has

been issued a permit by the distric t or by the Energy and Environment

Cabinet.

(c) On or before January 1, 2000, the district shall assume ownership of all

publicly owned package sewage treatment plants within its jurisdictional

boundaries, including all assets and liabilities as of January 1, 1994, and all

property, real and personal.

(d) The district shall plan for, and when economically feasible, transfer the

function of sewage treatment from package plants to central treatment

facilities.

(7) (a) Effective July 1, 1995, the district shall be responsible for the planning,

construction, improvement, operation, and maintenance of all sewer and

drainage facilities under its ownership, including combined sewer overflows,

and for compliance with all appl icable regulations promulgated by the Energy

and Environment Cabinet.

(b) The district shall establish uniform rates for its services throughout its

jurisdiction, and district rates shall vary only on the basis of consumption.