§8-19-12. Service charges; sinking fund; amount of bonds;
additional bonds; surplus.
(a) Every municipality or county commission issuing bonds
under the provisions of this article shall thereafter, so long as
any of such bonds remain outstanding, repair, maintain and operate
its waterworks or electric power system as hereinafter provided and
shall charge, collect and account for revenues therefrom as will be
sufficient to pay all repair, maintenance and operation costs,
provide a depreciation fund, retire the bonds and pay the interest
requirements of the bonds as the same become due. The ordinance or
order pursuant to which any such bonds are issued shall pledge the
revenues derived from the waterworks or electric power system to
the purposes aforesaid and shall definitely fix and determine the
amount of revenues which shall be necessary and set apart in a
special fund for the bond requirements. The amounts as and when so
set apart into said special fund for the bond requirements shall be
remitted to the West Virginia municipal bond commission to be
retained and paid out by said commission consistent with the
provisions of this article and the ordinance or order pursuant to
which such bonds have been issued: Provided, That payment of
principal of and interest on any bonds owned by the United States
of America or any agency or department thereof may be made by the
municipality or county commission directly to the United States of
America or said agency or department thereof. The bonds hereby
authorized shall be issued in such amounts as may be determined necessary to provide funds for the purpose for which they are
authorized, and in determining the amount of bonds to be issued it
shall be proper to include interest on the bonds for a period not
beyond six months from the estimated date of completion.
(b) If the proceeds of the bonds, because of error or
otherwise, shall be less than the cost of the property or
undertaking for which authorized, additional bonds may be issued to
provide the amount of such deficit and such additional bonds shall
be considered to be of the same issue and shall be entitled to
payment from the same fund without preference or priority over the
bonds first authorized and issued.
(c) If the proceeds of the bonds shall exceed the cost of the
property or undertaking, the surplus shall be converted into the
fund thereon.