96.182 Application of funds derived from operations -- Use of surplus.
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<![CDATA[96.182 Application of funds derived from operations -- Use of surplus. Subject to the provisions of outstanding bonds and contracts, the board shall apply all <br>funds derived from operations: (1) to the payment of operating expenses, (2) to the <br>payment of bond interest and retirement, (3) to sinking fund requirements, (4) to the <br>maintenance of a fund to meet depreciation and the improvements and extension of the <br>plant in an amount equal to six percent (6%) of the undepreciated book value of its <br>property, (5) to the maintenance of a cash working fund equal to one (1) month's revenue, <br>(6) to the payment of other obligations incurred in the operation and maintenance of the <br>plant and the furnishing of service, and (7) such taxes, if any, as the board may elect to <br>pay under the provisions of KRS 96.179, and any surplus revenues at the end of any <br>twelve (12) months ending June 30 shall be transferred to the sinking fund, and used by <br>the board only for the redemption or purchase of outstanding bonds, in which case such <br>bonds shall be canceled, or for the creation and maintenance of a cash working fund, or <br>the creation and maintenance of a fund for improvement and extension of the system, or <br>for the reduction of rates, or the board, after the original cost of the property shall have <br>been fully paid and satisfied may, in its sole discretion, use, apply and pledge all or a part <br>of such surplus revenues for the acquisition, construction, maintenance, improvement, <br>addition to and operation of any "public project" as the same is defined in subsection (1) <br>of KRS 58.010, or for the purpose of purchasing, paying, retiring, guaranteeing the <br>payment of or underwriting revenue bonds issued by the city or any agency thereof to <br>finance the acquisition, construction, maintenance, improvement, addition to and <br>operation of such "public project," which "public project" shall be located within the <br>territory served by the board; the board is hereby vested with all of the powers, duties and <br>responsibilities delegated and granted to a "governmental agency" under KRS 58.020 to <br>58.140, both inclusive; provided, however, that the acquisition or construction of any <br>"public project" as above defined, shall be first approved by the common council before <br>such "public project" is undertaken. History: Amended 1954 Ky. Acts ch. 249, sec. 1. -- Amended 1952 Ky. Acts ch. 44, sec. 4. -- Created 1946 Ky. Acts ch. 212, sec. 14. ]]>