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106.110 Pledge of income and revenue -- Form of resolution or ordinance.

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106.110 Pledge of income and revenue -- Form of resolution or ordinance. At or before the issuance of the bonds the water district commissioners shall, by <br>resolution, or the city legislative body shall, by ordinance, set aside and pledge the <br>income and revenue of the waterworks into a separate and special fund to be used and <br>applied in payment of the cost thereof and in the maintenance, operation and depreciation <br>thereof. The resolution or ordinance shall definitely fix and determine the amount of <br>revenue necessary to be set apart and applied to the payment of the principal and interest <br>of the bonds, and the proportion of the balance of the income and revenues to be set aside <br>as a proper and adequate depreciation account, and the remaining proportion of such <br>balance shall be set aside for the reasonable and proper operation and maintenance of the <br>waterworks. The rates to be charged for service from the waterworks shall be fixed and <br>revised from time to time so as to be sufficient to provide for payment of interest upon all <br>bonds and to create a sinking fund to pay the principal thereof when due, and to provide <br>for the operation and maintenance of the waterworks and an adequate depreciation <br>account. Effective: June 17, 1954 <br>History: Created 1954 Ky. Acts ch. 18, sec. 11, effective June 17, 1954.