State Codes and Statutes

State Codes and Statutes

Statutes > Kentucky > 074-00 > 395

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74.395 Financing of an expansion of water district system -- Plan for expansion project -- Applicability. (1) A water district organized under this chapter may elect to finance all or part of an expansion of its system by adding a temporary surcharge to the rates charged for <br>service. All funds so collected shall be set apart in a reserve trust account, shall be <br>invested in securities issued or guaranteed by the United States government until <br>they are needed, and shall be expended, together with any interest or other earnings, <br>solely for the expansions or extensions specified in the plan described under <br>subsection (2) of this section. If construction has not begun five (5) years after the <br>surcharge is implemented, all funds so collected shall be returned to the water <br>district customers, together with interest and earnings. This section shall constitute <br>an additional or alternate method of financing expanded facilities, and shall not <br>repeal or reduce any existing rights or duties of a water district. (2) A water district which elects to establish a reserve trust account under this section shall develop a plan for the expansion project or projects to be financed from the <br>reserve, which shall include the design and estimated cost of each element of the <br>expansion, a time schedule for each step in the project, the proposed financing, and <br>the amount of surcharge to water district rates needed to collect the amounts to be <br>financed out of district reserves. After approval by the board of commissioners, the <br>plan and proposed rates shall be submitted to the Public Service Commission. The <br>commission, after a public hearing, shall issue an order approving, modifying or <br>rejecting the plan. If a plan is approved, the commission shall establish a reasonable <br>surcharge to implement the plan to be collected for a period no longer than five (5) <br>years. The commission shall require the district to maintain its records in such a <br>manner as will enable it, or the commission or its customers, to determine the <br>amounts to be refunded and to whom they are due in the event that surcharge <br>amounts shall be refunded. (3) The water district may, with the approval of the commission, amend its plan to reflect subsequent developments or new information, but the changes shall not <br>violate the intent of the initial plan. (4) The provisions of this section also shall apply to water associations organized under KRS Chapter 273. Effective: July 15, 1988 <br>History: Created 1988 Ky. Acts ch. 323, sec. 1, effective July 15, 1988.