a. Pursuant to KRS 96.550-96.900, 96.350-96.510 and the declaratory judgment entered by Warren Circuit Court, Division II, in Civil Action No. 18099 on 3 March 1976, there is hereby created the Bowling Green Municipal Utilities Board (hereinafter “Board”) by merging into it all of the authority and responsibilities heretofore delegated to the former Electric Plant Board and the Water and Sewer Commission.
b. The Board shall be responsible for the acquisition, administration, maintenance and operation of all of the City’s electric, water and sewer plants and facilities and shall have three (3) separate and distinct divisions:
1. The Electric Division shall administer and operate the City’s electric system and shall separately account for all funds, deposits, operations and maintenance of the electric system. After the establishment of proper reserves, any surplus of proceeds shall be devoted solely to the reduction of electric rates.
2. The Water and Sewer Division shall administer and operate the City’s consolidated water works and sewer system as two (2) separate and distinct utilities and shall separately account for all funds, deposits, operations and maintenance of each utility. After the establishment of proper reserves, any surplus of proceeds shall be devoted solely to the reduction of water and sewer rates.
3. The General Services Division shall engage in such activities and operate such facilities as will be beneficial to the general welfare of the citizens of the City, which activities shall be approved by the Board of Commissioners. After the establishment of proper reserves, any surplus of proceeds shall be devoted to the reduction of rates, in such amounts and among such divisions as the Board determines.
c. So long as any revenue bonds regarding either the electric division or the water and sewer division remain outstanding all revenues and expenses of the three (3) separate divisions shall be segregated and all credits and funds belonging to each division shall be devoted exclusively to the payment of debt service, capital improvements and operating expenses of that division. Any expenditures incurred for the benefit of the divisions shall be apportioned on the basis of standard accounting procedures and rates charged to consumers for the furnishing of the three (3) utilities shall be established in such a manner that will protect both present and future bondholders and insure the integrity of both the electric division and the consolidated water and sewer division to the same extent that they would have been protected had their merger not been accomplished.
d. All assets and properties of every nature heretofore owned by or titled in the name of either the Electric Plant Board or the Water and Sewer Commission shall henceforth be owned by and titled in the name of the Bowling Green Municipal Utilities Board, and the Chairman of the Board is authorized to execute and deliver on behalf of either the Electric Plant Board or the Water and Sewer Commission any deed, bill of sale, assignment or other instrument necessary to properly effect and evidence this change in ownership.
(Ord. BG80-63, S27-17, 7/15/80; Ord. BG2001-5, 2/20/2001; Ord. BG2014-11, 6/3/2014; Ord. BG2016-42, 12/20/2016)