KRS 96.300: Ability of board of waterworks to borrow money -- Issuance of bonds --

Limitation of indebtedness.

The board of waterworks may borrow money for the purpose of meeting any of the

obligations of the waterworks corporation and for current expenses of the board. In

addition, the board may, after the commissioners of the sinking fund have by resolution

consented, issue the bonds of the waterworks corporation or issue bonds for the refunding

of bonds of the waterworks corporation, and these bonds may be issue d and may be

secured by the revenues of the waterworks corporation; by a mortgage upon the rights,

privileges, franchises, and property of the corporation; or by both. The bonds may be

issued in denominations, with maturities, bear interest, and be payable , as may be in the

best interest of the waterworks corporation as determined by the board with the consent

of the commissioners of the sinking fund and as otherwise required by the laws of the

Commonwealth. No indebtedness, bonded or otherwise, may be auth orized or consented

to if, as a result of that borrowing, the waterworks corporation's net aggregate debt service

on all outstanding indebtedness in any one year, multiplied by one and three -tenths (1.3),

will exceed the corporation's net income, determine d in accordance with generally

accepted accounting principles, for the fiscal year immediately preceding the borrowing.