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96.535 Water plant or electric light, heat and power plant of second or third-class city -- Maintenance, operation and depreciation funds for -- Payment of surplus to general fund of city -- Fair retu

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96.535 Water plant or electric light, heat and power plant of second or third-class city -- Maintenance, operation and depreciation funds for -- Payment of <br>surplus to general fund of city -- Fair return on property. (1) At the time or before or after the issuance of revenue bonds for the acquisition, extension or maintenance of a system of waterworks or electric light, heat and <br>power plants in cities of the second and third classes, which bonds do not represent <br>the general obligation of the city, the city legislative body shall, by ordinance, set <br>aside and pledge the income and revenue of any such municipally owned utility into <br>a separate and special fund to be used and applied in the payment of the cost <br>thereof, and in the maintenance, operation and depreciation thereof, and for the <br>purposes hereinafter set out. The ordinance shall definitely fix and determine the <br>amount of revenue necessary to be set apart and applied to the payment of the <br>principal and interest of the bonds, and the portion of the balance of the income and <br>revenue to be set aside as a proper and adequate depreciation account, and the <br>portion to be set aside for the reasonable and proper operation and maintenance of <br>the utility, and may provide that the surplus not needed for the purposes aforesaid <br>shall be paid over to and become a part of the general funds of such city. The rates <br>to be charged for services from the utility shall be fixed and revised from time to <br>time by the board appointed to operate the utility by and with the approval of the <br>legislative body of the city so as to be sufficient to provide for the payment of <br>interest upon all bonds and to create a sinking fund to pay the principal thereof <br>when due; to provide for the operation and maintenance of the utility and an <br>adequate depreciation account; and such rates may be fixed as will furnish a fair and <br>reasonable return to the municipality on the fair value of the used and useful <br>property of the utility. (2) Nothing in this section shall apply to electrical plants acquired or operated under provisions of KRS 96.550 to 96.900. History : Created 1944 Ky. Acts ch. 28, sec. 1.