10-1116a.   Cash basis law; exemptions.The limitations on expenditures imposed underthe cash-basis law shall not apply to:

      (a)   Expenditures in excess ofcurrent revenues made for municipally owned and operated utilities out ofthe fund of such utilities caused by, or resulting from the meeting of,extraordinary emergencies including drought emergencies. In such casesexpenditures in excess of currentrevenues may be made by declaring an extraordinary emergency by resolutionadopted by the governing body and such resolution shall be published atleast once in a newspaper of general circulation in such city. Thereupon,such governing body may issue interest bearing no-fund warrants on suchutility fund in an amount, including outstanding previously issued no-fundwarrants, not to exceed 25% of the revenues fromsales of service of such utility for the preceding year. Such warrantsshall be redeemed within three years from date of issuance and shallbear interest at a rate of not to exceed the maximum rate of interestprescribed by K.S.A. 10-1009, and amendments thereto. Upon thedeclaration of a drought emergency, the governing body may issue suchwarrants for water system improvement purposes in an amount not to exceed50% of the revenue received from the sale of water for the preceding year.Such warrants shall be redeemed within five years from the date of issuanceand shall bear interest at a rate not to exceed the maximum rate ofinterest prescribed by K.S.A. 10-1009, and amendments thereto.

      (b)   Expenditures in any month by school districts which are in excessof currentrevenues if the deficit or shortage in revenues is caused by, ora result of, the payment of state aid afterthe date prescribed for the payment of state aid during such month underK.S.A. 72-6417 or 72-6434, and amendments thereto.

      History:   L. 1941, ch. 98, § 2;L. 1970, ch. 64, § 7;L. 1989, ch. 54, § 1;L. 2003, ch. 25, § 2;L. 2003, ch. 139, § 1;L. 2009, ch. 139, § 1; May 28.