{"data":{"id":"us-ky/krs-74.395","jurisdiction":"us-ky","citation":"KRS 74.395","heading":"Financing of an expansion of water district system -- Plan for expansion","body":"project -- Applicability.\n(1) A water district organized under this chapter may elect to finance all or part of an\nexpansion of its system by adding a temporary surcharge to the r ates charged for\nservice. All funds so collected shall be set apart in a reserve trust account, shall be\ninvested in securities issued or guaranteed by the United States government until\nthey are needed, and shall be expended, together with any interest or other earnings,\nsolely for the expansions or extensions specified in the plan described under\nsubsection (2) of this section. If construction has not begun five (5) years after the\nsurcharge is implemented, all funds so collected shall be returned to the water\ndistrict customers, together with interest and earnings. This section shall constitute\nan additional or alternate method of financing expanded facilities, and shall not\nrepeal or reduce any existing rights or duties of a water district.\n(2) A water d istrict which elects to establish a reserve trust account under this section\nshall develop a plan for the expansion project or projects to be financed from the\nreserve, which shall include the design and estimated cost of each element of the\nexpansion, a time schedule for each step in the project, the proposed financing, and\nthe amount of surcharge to water district rates needed to collect the amounts to be\nfinanced out of district reserves. After approval by the board of commissioners, the\nplan and propose d rates shall be submitted to the Public Service Commission. The\ncommission, after a public hearing, shall issue an order approving, modifying or\nrejecting the plan. If a plan is approved, the commission shall establish a reasonable\nsurcharge to implement the plan to be collected for a period no longer than five (5)\nyears. The commission shall require the district to maintain its records in such a\nmanner as will enable it, or the commission or its customers, to determine the\namounts to be refunded and to wh om they are due in the event that surcharge\namounts shall be refunded.\n(3) The water district may, with the approval of the commission, amend its plan to\nreflect subsequent developments or new information, but the changes shall not\nviolate the intent of the initial plan.\n(4) The provisions of this section also shall apply to water associations organized under\nKRS Chapter 273.","path":["KRS Chapter 74"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=24409","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:49:34Z","sha256":"5a8ce70a807c3b36fa2d6ddbeaff7bd8d7a3a93dcf039d94150b1e033f0d6c8a","source_id":"us-ky","stale":false,"prev":"us-ky/krs-74.390","next":"us-ky/krs-74.400"},"notice":"GroundRules: Original legal text. Not legal advice."}