{"data":{"id":"us-ky/krs-74.300","jurisdiction":"us-ky","citation":"KRS 74.300","heading":"Payment of bonds for additions -- Operating and depreciation funds.","body":"(1) All money derived from any bonds issued under KRS 74.280 to 74.310 shall be\napplied solely for the construction or acquisition of the additions, extensions and\nappurtenances, or to advance the payment of interest on bonds during the first three\n(3) years following the date of issue of the bonds.\n(2) At or before the issuance of such bonds the commission shall by ordinance set aside\nand pledge the income and revenue of the waterworks into a separate and special\nfund to be used and applied in the payment of the cost of the additions, extensions\nor appurtenances and the maintenance, operation and depreciation thereof. The\nordinance shall definitely fix and determine the amount of revenue that is necessary\nto be set apart and applied to the payment of the princ ipal and interest of the bonds,\nand the proportion of the balance of such income and revenue that is to be set aside\nas a proper and adequate depreciation account. The balance shall be set aside for the\noperation and maintenance of the waterworks. The rate s to be charged for the\nservice from the waterworks shall be sufficient to provide for the payment of\ninterest upon all bonds and to create a sinking fund to pay the principal when due,\nand to provide for the operation and maintenance thereof and an adequa te\ndepreciation account.\n(3) If there is a surplus in the operating and maintenance fund equal to the cost of\nmaintaining and operating the waterworks during the remainder of the current\ncalendar or fiscal year, and during the next calendar or fiscal year , the commission\nmay at any time transfer any excess over that amount to the depreciation account.\n(4) The funds in the depreciation account shall be expended in balancing depreciation\nin the waterworks or in making new constructions, extensions or additi ons thereto.\nThe funds may be invested as the commission designates and the income from\ninvestments shall be credited to the depreciation account.","path":["KRS Chapter 74"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=24396","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:49:34Z","sha256":"f12018857d8cb012694def147c91eb1a74dd5818d2c52140ce345b3e90f4cc13","source_id":"us-ky","stale":false,"prev":"us-ky/krs-74.290","next":"us-ky/krs-74.310"},"notice":"GroundRules: Original legal text. Not legal advice."}