Statutes > Kentucky Statutes > CHAPTER 216 HEALTH FACILITIES AND SERVICES > 216.160 Sinking fund, operation and depreciation accounts to be provided -- Lease income.

216.160 Sinking fund, operation and depreciation accounts to be provided -- Lease income.

Download pdf

Loading PDF...


216.160 Sinking fund, operation and depreciation accounts to be provided -- Lease income. (1) On or before the issuance of the bonds the city legislative body shall, by ordinance, set aside and pledge the income of the municipal hospital into a separate and special <br>fund to be used and applied in payment of the cost, maintenance, operation and <br>depreciation of the hospital. The ordinance shall fix the amount of revenue <br>necessary to be set aside and applied to the payment of the principal and interest of <br>the bonds and the proportion of the balance of the income to be set aside as a proper <br>and adequate depreciation account. The remaining portion of the balance shall be <br>set aside for the reasonable and proper operation and maintenance of the hospital. <br>The rates to be charged for the use of the hospital and the services it renders shall be <br>fixed and revised from time to time so as to be sufficient to provide for the payment <br>of interest upon all bonds and to create a sinking fund to pay the principal thereof <br>when it becomes due, to provide for the operation and maintenance of the hospital, <br>and to provide an adequate depreciation account. (2) The municipality issuing bonds under KRS 216.100 may lease the facility built from the proceeds of said bonds to a hospital district created under KRS 216.310 et <br>seq. In that event the lease income from a lease agreement between the municipality <br>and the hospital district shall be sufficient to provide for the payment of interest <br>upon the bonds, to create a sinking fund to pay the principal thereof at or prior to <br>maturity, to accumulate proper reserves, and to pay the costs of operation and <br>insurance; or the lease may provide that the lessee shall pay the cost of insurance. History: Amended 1970 Ky. Acts ch. 145, sec. 1. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 3235i-9.