10-1116.   Limits of indebtedness may be exceeded, when; creatingindebtedness in violation of act unlawful.(a) The limits of indebtedness prescribed under the provisions ofarticle 11 of chapter 10 of the Kansas Statutes Annotated may beexceeded when: (1) Payment has been authorized by a vote of the electors of themunicipality; (2) provision has been made for payment by the issuance ofbonds or temporary notes as provided by law; (3) provision has beenmade for payment by theissuance of no-fund warrants authorized by law and in the manner, andlimited in amount as prescribed by law; (4) provision has been made fora revolving fund for the operation of any municipal airport financed andsustained partially or wholly by fees, rentals, proceeds from the sale ofmerchandise or charges for rendering services, received from the users ofsuch airport; (5) provision has been made for payment pursuant to aservice agreement entered into pursuant to K.S.A. 12-5503, and amendmentsthereto; or (6) the indebtedness is created by a municipality inestablishing a post-employment benefits trust fund in accordance with K.S.A.12-16,102, and amendments thereto.

      (b)   Notwithstanding any other limits of indebtedness prescribed underthe provisions of article 11 of chapter 10 of the Kansas StatutesAnnotated, the following funds shall have as a limit of indebtedness an amountequal to 100% of the accrued revenue of the current fiscalyear plus any balances carried forward, cash reserves, intergovernmentalgrants, and sums advanced to qualify for intergovernmental grants: (1)Special recreation facilities reserve funds set up by any board of parkcommissioners or any municipality for a revolving fund for the repair,replacement or addition to recreational facilities; (2) enterprise fundsset up in any municipality to account for the financing of self-supportingactivities of governmental units which render services on a user chargebasis to the general public, such as municipal utilities engaged in theprovision of water, electricity and natural gas and sanitary sewer systemswhich are financed by user charges; or (3) intragovernmental service fundsor working capital funds established in any municipality to finance andaccount for services and commodities furnished by a designated agency of agovernmental unit to other departments of the same governmental unit suchas funds established for central garages and motor pools, central printingand duplicating services and central purchasing and stores departments.

      The board of education of any school district, the board of regents ofany municipal university or the board of trustees of any communitycollege may enter into contracts for teachers and other necessaryemployees and for continuing operating expenses in excess of the amount offunds actually on hand for that purpose. The limit ofindebtedness provided by this section shall never exceed 100% of the amountactually expended for school purposes for thelast preceding fiscal year during which school was conducted.

      (c)   It shall be unlawful for any member of the governing body of anymunicipality, as defined in K.S.A. 10-1101, and amendments thereto, toknowingly vote for or in anymanner aid or promote the entering into of any contract or the creation ofany other indebtedness in violation of the provisions of this section.

      History:   L. 1933, ch. 319, § 16;L. 1941, ch. 98, § 1;L. 1945, ch. 92, § 1;L. 1959, ch. 62, § 2;L. 1963, ch. 68, § 1;L. 1974, ch. 47, § 1;L. 1975, ch. 49, § 1;L. 1990, ch. 64, § 12;L. 2007, ch. 82, § 2; Apr. 12.