12-1674.   Same; special services fund; use; no-fund warrants.Any such city which has or proposes to provide services and to chargecosts of the work in connection therewith under the authority of this actmay by ordinance establish a "special services fund" in the city treasury.Said fund shall be used to pay the initial costs of improvements whenordered by the governing body and shall be reimbursed as hereinafterprovided. Such fund need not be budgeted for expenditures during any yearbut the amount thereof shall be stated in the published budget ofexpenditures. To provide initial moneys for such fund, the city governingbody may issue no-fund warrants in such amount as deemed necessary by thegoverning body of the city to pay any debts incurred in performing servicesuntil such revolving fund receives sufficient moneys from tax collectionsand from persons for whom services were performed to operate independentlyfrom such no-fund warrant revenue. Such no-fund warrants shall be issuedand be registered as provided by K.S.A. 79-2940 and bearinterest at not to exceed the maximum rate of interest prescribed by K.S.A.10-1009 until paid. It shall be sufficient that the warrants recite thatthey are issued by the governing body and by virtue of this act. Suchwarrants shall be paid and redeemed by the county treasurer.

      Said fund shall be used to pay for the costs of all work performed asdirected by the city as a result of failure of persons to perform dutiesprescribed by law or ordinance. All collections from persons for suchservices, including all collections of special service assessments shall beplaced in such fund and thereafter used to provide the services authorizedand provided for in this act.

      History:   L. 1968, ch. 407, § 2; L. 1970, ch. 64, § 15; March 21.