{"data":{"id":"us-ky/krs-65.8921","jurisdiction":"us-ky","citation":"KRS 65.8921","heading":"Procedure for establishing or changing rates or charges for service.","body":"(1) The rates and charges to be assessed by the commission to its member entities and\nother parties shall be the verified cost of providing the services as prescribed in this\nsection, and shall be allocated based on usage and the cost of service. However, if\ncontinuity of consumer service or the preservation of water quality is threatened by\nspecial circumstances affecting a public wastewater utility, the commission may\nestablish special rates for that entity for a period not to exceed one (1) year so long\nas b enefits to member entities are not jeopardized and nonmembers are not\nadversely affected in any manner.\n(2) The commission shall establish wholesale charges, rates, and terms for its services\nto its member entities and to any other party to which it provid es service under\ncontract that are fair, just, and reasonable and shall be sufficient at all times to:\n(a) Pay the cost of operation and maintenance of any facility that it may own or\nlease to provide wastewater services contracted to its member entities o r other\nparties;\n(b) Pay the principal and interest on any bonds, loans, or other instruments or\nobligations secured in the name of the commission; and\n(c) Provide an adequate fund for renewals, replacements, and reserves.\n(3) The commission's procedure fo r establishing or changing rates and charges levied\non member entities and other parties that contract for service shall be as follows:\n(a) Every five (5) years, or more often if circumstances warrant, the commission\nshall procure, pursuant to KRS 45A.343,  45A.345 to 45A.460, 45A.735,\n45A.740, 45A.745, and 45A.750, the professional consulting services of an\nindependent accounting firm or individual accountant qualified and\nexperienced in conducting cost -of-service studies. The commission shall\ninvite the go verning body of each member entity to designate a special\nrepresentative to participate in the consultant selection process;\n(b) The firm or individual selected in consultation with the commission's\ndesignated engineers, operators, and other knowledgeable individuals shall\nperform a cost-of-service study to:\n1. Determine the actual or probable cost of operating and maintaining the\ncommission's respective wastewater facilities;\n2. Determine the cost of servicing any associated debt obligations and\nadministrative costs;\n3. Devise a comprehensive cost allocation plan and recommend that the\ncommission establish and levy specific rates for treatment services and\nappropriate charges for other services to offset these costs; and\n4. Devise and recommend a standard m ethod of formulary whereby the\ncommission may conduct regular financial analyses internally, based on\nsound accounting policy, allowing for the application of inflation indices\nand other equitable methods of determining service rates;\n(c) The commission shall determine and set final rates and charges based on and\nonly after:\n1. The cost -of-service study and recommendations of the consultant are\nreceived;\n2. Consultation with the governing bodies of member entities during the\ncost-of-service study; and\n3. For a rate increase greater than five percent (5%), a vote approving the\nfinal rate by a majority of the legislative bodies of the member entities\nthat comprise the wastewater commission or, in the case of a special\ndistrict or government ag ency, by the fiscal court of the county that\ncontains the district or agency, which shall take action thirty (30) days\nafter notice of the proposed final rate. Each legislative body of a member\nentity, or fiscal court in the case of a special district or g overnment\nagency, shall have equal weight. Absent a majority vote, rates shall\nremain provisional and must be reset by the wastewater commission;\n(d) Initial rates and charges and any subsequent changes to rates and charges of\nfive percent (5%) or less sha ll be approved by the commission, but not more\nthan once in a twelve (12) month period. Increases above five percent (5%)\nshall remain provisional until action by the legislative bodies pursuant to\nparagraph (c) of this subsection; and\n(e) The commission s hall provide not less than sixty (60) days' written notice to\nthe governing bodies of the member entities prior to the effective date of any\nchange in rates or charges for service, which shall remain provisional until\naction by the legislative bodies of th e member entities pursuant to paragraph\n(c) of this subsection.","path":["KRS Chapter 65"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=39884","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:49:23Z","sha256":"e01e9dbe1f2f4d3fc67520e4ca8b78a362df05952ac754998f052d7b5f4bdbe8","source_id":"us-ky","stale":false,"prev":"us-ky/krs-65.8919","next":"us-ky/krs-65.8923"},"notice":"GroundRules: Original legal text. Not legal advice."}