KRS 76.090: Rates, rentals, and charges -- Use of funds of district -- Cutting off sewer

and water service to delinquents.

(1) The district may establish a schedule of rates, rentals, and charges, to be collected

from all the real property within the district area served by the facilities of the

district, and prescribe the manner in which and the time at which the rates, rentals,

and charges are to be paid, and may change the schedule from time to time as the

district deems necessary, advisable or expedient. The sc hedule may be based upon

either:

(a) The consumption of water on premises connected with the facilities, taking

into consideration commercial and industrial use of water; or

(b) The number and kind of plumbing fixtures connected with the facilities; or

(c) The number of persons served by the facilities; or

(d) May be determined by the district on any other basis or classification which

the district determines to be fair and reasonable, whether similar or dissimilar

to those enumerated, except that the sched ule shall be uniform for all

residential property; or

(e) Any combination thereof.

This schedule may include additional charges for treatment of sewage, with a

surcharge where the sewage contains industrial wastes or other wastes in excess of

limitations established by regulations of the district.

(2) Prior to the final adoption or modification of the schedule for the district area, the

district shall adopt a proposed schedule and publish notice thereof pursuant to KRS

Chapter 424. The notice so published shall be dated as of the date of first

publication thereof and shall state that the proposed or revised schedule of rates,

rentals, and charges will remain open for inspection in the office of the district for

thirty (30) days from the date of the notice, and that objections thereto in writing

may be filed during that period with the district by any person aggrieved thereby.

The district shall examine and hear any and all complaints, may modify the

proposed schedule, and shall adopt and establish a final sc hedule within sixty (60)

days after the date of the notice; the schedule, however, shall not become final

within a county outside a city of the first class until it has been approved by the

fiscal court of the county, or shall not become final within a cit y of the first class,

unless and until it has received the approval of the legislative body of the city of the

first class by ordinance approved by the mayor; provided, however, the schedule

finally adopted shall be sufficient and adequate to cover the pur poses of this

chapter. The schedules shall be uniform for all property falling within the same

classification, which classification may be based upon the length of time the

property has been in the district area, the drainage area within which the property

lies, or any similar or dissimilar reasonable classification, except that the schedule

shall be uniform for all residential property. The schedule so adopted and

established shall thereafter be the rates, rentals, and charges for the use of the

facilities of the district by users within the district area, until changed in the manner

herein provided. The schedule of rates, rentals, and charges shall be established and

revised from time to time so as to produce aggregate revenues to the district

sufficient:

(a) For the payment of the interest on and principal of all revenue bonds and other

obligations of the district except construction subdistrict obligations and

bonds;

(b) For the payment of all cost and expenses of operating and maintaining the

sewer and drainage system of the district within the district area, including but

not limited to that portion of the salaries, wages, and fees of all officers and

employees of the district equitably allocable to operations within or for the

district area; and

(c) For the payment of all cost of renewals and replacement of such system within

the district area; provided, however, that all expenses, salaries, wages, and

fees necessary or incident to improvements for the account of which bonds are

issued, may be included a s a part of the cost of the improvements and paid

from the proceeds of the bonds.

The district may collect the sewer rates, rentals, and charges, or cause them to be

collected and paid to it by agencies it designates, and with whom it may make such

contracts or arrangements as the district deems proper. No moneys received on

account of the existence or operation of construction subdistricts shall be used for

the payment of district obligations, and no other moneys received by the district

shall be used for the payment of construction subdistrict bonds or obligations.

Except as provided in the preceding sentence, the use of all moneys of the district

received from any and all sources is hereby limited exclusively and shall be devoted

solely to the payment of all obligations of the district and board created by KRS

76.010 to 76.210, and no funds from any sources authorized by KRS 76.010 to

76.210, shall be diverted to any other purposes than those in KRS 76.010 to 76.210

set forth, except that the district sha ll pay from district area revenues an equitably

allocable share of the cost of constructing and operating any nondistrict area

facilities to which sewage from the district area is diverted in order to relieve

facilities from excessive sewage and costs desc ribed in KRS 76.248 but otherwise

paid for.

(3) Whenever an area located within the district is served initially by a construction

subdistrict facility, the schedule of rates, rentals, and charges applicable to the

particular construction subdistrict shall , at the discretion of the board, be applied to

the area.

(4) Whenever any such sewer rates, rentals, or charges for services rendered remains

unpaid for a period of thirty (30) days after the same becomes due and payable, the

district shall declare the pr operty, the owner thereof, and the user of the service,

delinquent until such time as all service rates, rentals, and charges are fully paid and

may cut off the sewer connection and service. It is unlawful for any delinquent to

use water from any public water service or system and discharge same into a public

sewer. No public water service or system shall furnish the delinquent with water to

be discharged into a public sewer. The district may enter into agreements with any

public water company or public wat er service providing for the discontinuance of

water service to delinquents.