KRS 220.440: Sinking, operating and depreciation funds to be provided.

At or before the issuance of the bonds, the board of directors of the district shall, by

resolution, set aside and pledge the revenue derived from services rendered by its sanitary

works into a separate and special fund to be used and applied in the paymen t of the cost,

maintenance, operation and depreciation of the works. The resolution 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 revenue

to be set aside as a proper and adequate depreciation fund. The remaining portion of the

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

works, except as provided in KRS 220.450. The rate s to be charged for the service from

the works shall be fixed and revised from time to time, in accordance with the provisions

of KRS 220.510, so as to be sufficient to provide for the payment of interest upon all

bonds and to create a sinking fund to pay the principal due, to provide for the operation

and maintenance of the works, and to provide an adequate depreciation account.