KRS 96.430: Maintenance, operation and depreciation funds -- Rates.

At or before the issuance of bonds 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, o peration and

depreciation thereof. The 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 r evenues 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 maintenance of the

waterworks. The rates to be charged for service from the w aterworks 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 thereof when due, and to provide

for the operation and maintenance of the wate rworks and an adequate depreciation

account.