{"data":{"id":"us-ky/krs-82.145","jurisdiction":"us-ky","citation":"KRS 82.145","heading":"Special fund to repay revenue bonds -- Pledge by city to segregate and","body":"protect revenues.\nPrior to the issuance of the bonds, provision shall be made by ordinance for the creation\nof a separate and special fund or account of the city, identified as cons tituting the source\nof payment of principal and interest, and by covenant to be continued so long as any of\nthe bonds shall remain outstanding and unpaid. By the provisions of such ordinance the\ncity may pledge and covenant that it will cause to be set asi de and deposited in such\nseparate and special fund, from time to time, moneys received from any or all of the\nfollowing sources, subject to the following conditions and limitations:\n(1) In the event that the contract of inducement with the governmental ag ency is upon\nsuch terms as will cause the governmental project to produce direct revenues in the\nform of rents, royalties, fees, rates or charges of any character, including any\npayments to the city in lieu of property taxes, but not property taxes themsel ves, all\nor any portion thereof may be so pledged; but it shall not be a condition or\nrequirement in the issuance of revenue bonds that such revenues be anticipated at\nall, nor that they be sufficient in themselves to provide for the payment of principal\nand interest when scheduled to become due.\n(2) In the event that the contract of inducement with the governmental agency is upon\nsuch terms as in the opinion of the governing body of the city will cause the project\nto produce no direct revenues, or to prod uce direct revenues insufficient to give\nacceptable assurance of payment of principal and interest when scheduled to\nbecome due, then:\n(a) The city may pledge and covenant that it will cause to be deposited in said\nspecial fund the revenues which it may d erive from any municipally owned\nand operated water, electric, gas, sewer or other utility systems, or from any\ncombination thereof, to the extent such revenues at the time may be or become\nsurplus to the necessary costs of operating and maintaining such u tility system\nor systems and surplus to any existing contractual commitments of the city to\nthe holder or holders of outstanding revenue bonds payable from such\nrevenues; and\n(b) If the governing body of the city shall make a legislative finding of fact, as\nrecited in the body of the ordinance authorizing issuance of the bonds, that the\ngovernmental project is of such nature as to provide increased revenues to the\ncity by reason of increased employment and resulting increased receipts from\noccupational lic ense fees or occupational license taxes, then the city may\npledge and covenant that it will cause to be deposited in said separate and\nspecial fund the receipts which may be definitely identified as accruing from\nsuch occupational license fees or taxes by reason of employment in or directly\nrelated to the governmental project, less a proportionate part of the costs of\ncollecting such fees or taxes.\n(3) In the case of revenues originating from any of the sources and in the respective\nmanners set forth in th e paragraphs (a) and (b) of subsection (2) of this section, the\ncity may covenant and pledge (i) that such revenues, or a stipulated amount thereof,\nwill be set aside and deposited in the special fund when, as and if received; (ii) that\nas to any city -owned utility system the rate or schedule of rates prevailing at the\ntime revenue bonds are issued will not be reduced so long as any of the bonds\nremain outstanding and unpaid, and (iii) in the case of a pledge of revenues of a\ncity-owned utility system or combination of utility systems, that the city will not sell\nor otherwise dispose thereof without making provision for payment of the revenue\nbonds from the proceeds of such sale or other disposition, due regard being given to\nthe priority of any previously i ssued bonds which are payable from such revenues;\nbut a city may not additionally pledge that it will raise or adjust the rate or rates of\nany utility system, or of any combination of utility systems, or of any occupational\nlicense fee or occupational lice nse tax solely for the purpose of assuring revenues\nfrom such sources adequate to provide for payment of revenue bonds issued under\nKRS 82.140 to 82.165.","path":["KRS Chapter 82"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=25051","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:49:43Z","sha256":"753d768d43c263a023c98f16c9833fc414b776609f68dd421523874fdbbcf755","source_id":"us-ky","stale":false,"prev":"us-ky/krs-82.140","next":"us-ky/krs-82.150"},"notice":"GroundRules: Original legal text. Not legal advice."}