(A) There shall be an annual rate review of the system at the end of the system's fiscal year commencing with the fiscal year ending June 30, 1993, and, such rates will be set separately for each component of the system, that is, each rate shall be calculated separately for the water component, the sewer component, and the gas component for the utilities system and, when such rates need to be adjusted according to the following formula that adjustment shall be made automatically by the Utilities Commission without the necessity of approval by the City Council.
(1) Operation and maintenance costs;
(2) Principal and interest on this debt of the system (1993 refunding bonds and the second lien Kentucky Infrastructure debt and any additional future debt);
(3) A Debt Service Reserve Fund to average annual debt service on the 1993 bonds and any additional first lien parity bonds over a period of 60 months;
(4) A Depreciation Reserve Fund over a 60-month period to a total of $350,000; and
(5) An Operation and Maintenance Fund equal to two months operations over 60-month period.
(B) The Commissioners shall monitor the above factors, and at such time as it is necessary to raise or lower rates in order to accommodate said factors, the Commissioners shall do so.
(Ord. passed 3-15-93)
Editor's note:
Pursuant to Ord. 2005-08, passed 10-3-05, the Utility Commission has requested that the required automatic rate increase for the water system be held in abeyance until January 1, 2007 due to the projected high price of natural gas and its impact on the citizens of the city.