74.395 Financing of an expansion of water district system -- Plan for expansion

389 words·~2 min read·/ky/74-395

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

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

service. All funds so collected shall be set apart in a reserve trust account, shall be

invested in securities issued or guaranteed by the United States government until

they are needed, and shall be expended, together with any interest or other earnings,

solely for the expansions or extensions specified in the plan described under

subsection

(2)of this section. If construction has not begun five

(5)years after the

surcharge is implemented, all funds so collected shall be returned to the water

district customers, together with interest and earnings. This section shall constitute

an additional or alternate method of financing expanded facilities, and shall not

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

reserve, which shall include the design and estimated cost of each element of the

expansion, a time schedule for each step in the project, the proposed financing, and

the amount of surcharge to water district rates needed to collect the amounts to be

financed out of district reserves. After approval by the board of commissioners, the

plan and proposed rates shall be submitted to the Public Service Commission. The

commission, after a public hearing, shall issue an order approving, modifying or

rejecting the plan. If a plan is approved, the commission shall establish a reasonable

surcharge to implement the plan to be collected for a period no longer than five

years. The commission shall require the district to maintain its records in such a

manner as will enable it, or the commission or its customers, to determine the

amounts to be refunded and to whom they are due in the event that surcharge

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

violate the intent of the initial plan.

(4)The provisions of this section also shall apply to water associations organized under

KRS Chapter 273.