{"data":{"id":"us-ky/krs-96.535","jurisdiction":"us-ky","citation":"KRS 96.535","heading":"Water plant or electric light, heat and power plant of city with population","body":"of 8,000 or more -- Maintenance, operation and depreciation funds for --\nPayment of surplus to general fund of city -- Fair return on property.\n(1) At the time or before or a fter the issuance of revenue bonds for the acquisition,\nextension or maintenance of a system of waterworks or electric light, heat and\npower plants in cities with populations equal to or greater than eight thousand\n(8,000) based upon the most recent federa l decennial census, which bonds do not\nrepresent the general obligation of the city, the city legislative body shall, by\nordinance, set aside and pledge the income and revenue of any such municipally\nowned utility into a separate and special fund to be use d and applied in the payment\nof the cost thereof, and in the maintenance, operation and depreciation thereof, and\nfor the purposes hereinafter set out. The ordinance shall definitely fix and determine\nthe amount of revenue necessary to be set apart and app lied to the payment of the\nprincipal and interest of the bonds, and the portion of the balance of the income and\nrevenue to be set aside as a proper and adequate depreciation account, and the\nportion to be set aside for the reasonable and proper operation and maintenance of\nthe utility, and may provide that the surplus not needed for the purposes aforesaid\nshall be paid over to and become a part of the general funds of such city. The rates\nto be charged for services from the utility shall be fixed and revis ed from time to\ntime by the board appointed to operate the utility by and with the approval of the\nlegislative body of the city so as to be sufficient to provide for the payment of\ninterest upon all bonds and to create a sinking fund to pay the principal t hereof\nwhen due; to provide for the operation and maintenance of the utility and an\nadequate depreciation account; and such rates may be fixed as will furnish a fair and\nreasonable return to the municipality on the fair value of the used and useful\nproperty of the utility.\n(2) Nothing in this section shall apply to electrical plants acquired or operated under\nprovisions of KRS 96.550 to 96.900.","path":["KRS Chapter 96"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=43758","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:49:58Z","sha256":"437c4f031721016cb683d02a58977f078a98be202d4e9171f4c1aca7f677fdee","source_id":"us-ky","stale":false,"prev":"us-ky/krs-96.534","next":"us-ky/krs-96.536"},"notice":"GroundRules: Original legal text. Not legal advice."}