12-1737.   Same; methods of financing authorized; issuance of bonds afterelection; tax levy, use of proceeds; protest petition and election; investmentof fund; issuance of no-fund warrants.The governing body of any city may, for the purposes hereinbeforeauthorized and provided:

      (a)   Receive and expend gifts;

      (b)   receive and expend grants-in-aid of state or federal funds;

      (c)   issue bonds of the city;

      (d)   levy an annual tax of not more than one mill for any cityof the first class and not more than two mills for any city of thesecond or third class, which tax levy may be made for a period not exceeding10 years upon all taxable tangible property in such cityfor the purpose of creating a building fund to be used for the purposesherein provided and to pay a portion of the principal and interest onbonds issued by such city under the authority of K.S.A.12-1774, and amendments thereto;

      (e)   issue no-fund warrants;

      (f)   use moneys from the general operating fund or other appropriatebudgeted fund when available;

      (g)   use moneys received from the sale of public buildings orbuildings and sites; or

      (h)   combine any two or more of such methods of financing forthe purposes herein authorized except that cities shall first use fundsreceived from the payment of insurance claims for damages sustained byany such public building before resorting to methods of financing hereinauthorized.

      An election upon the issuance of bonds under the authorityof this act shall be required for the purpose of acquiring orconstructing city offices, public libraries, auditoriums, community orrecreational buildings.

      When an election upon the issuance of bonds is required, the questionof the issuance of such bonds shall be submitted to a vote of thequalified electors of the city at a regular city election or at aspecial election called for that purpose. No such bonds shall beissued unless a majority of those voting on the question vote in favor ofthe issuance of the bonds. The bond election shall be called and held andthe bonds shall beissued in accordance with the provisions of the general bond law. Nolevies shall be made for the purpose of creating a building fund underthe provisions of this act until a resolution authorizing the making ofsuch levies is adopted by the governing body of the city. Suchresolution shall state the specific purpose for which the tax levy ismade, the total amount proposed to be raised and the number of years thetax levy shall be made. The resolution shall be published once each week fortwo consecutive weeks in the official city paper. After publication, the leviesmaybe made unless a petition requesting an election upon thequestion of whether to make the levies is filed in accordance with thissection. Such petition shall besigned by electors equal in number to not less than 10% ofthe electors who voted at the last preceding regular city election asshown by the poll books, is filed with the city clerk of such citywithin 60 days following the last publication of theresolution. If a valid petition is filed, the governing body shallsubmit the question to the voters at an election called for that purposeor at the next regular city election.

      The levy authorized by this section shall be in addition to and not limited byany other act authorizing or limiting the tax levies of thecity. Thebuilding fund may be used for the purposes provided by this act atany time after the second levy has been made. If there areinsufficient moneys in the building fund for expenditures for suchpurposes, the governing body of the city may issuebonds of the city in the mannerprovided by the general bond law of the state and in anamount which, together with the amount raised by the tax levy authorizedby this act, will not exceed the total amount stated in the resolutioncreating such fund. Cities are hereby authorized to invest any portionof the special building fund which is not currently needed ininvestments authorized by K.S.A. 12-1675, and amendmentsthereto, in the manner prescribed therein or in direct obligations ofthe United States government maturing or redeemable at par and accruedinterest within three years from date of purchase, the principal andinterest whereof is guaranteed by the government of the United States.All interest received on any such investment shall upon receipt thereofbe credited to the special building fund.

      No-fund warrants issued under the authority of this act shall beissued in the manner and form and bear interest and be redeemed asprescribed by K.S.A. 79-2940, and amendments thereto, except thatthey may be issued without the approval of the state courtof tax appeals and without the notation required by K.S.A. 79-2940, andamendments thereto. The governing body of the city issuing suchwarrants shall levy a tax for the first tax levying period aftersuch warrants are issued, sufficient to pay such warrants and theinterest thereon. All such tax levies shall be in addition to all otherlevies authorized or limited by law, and none of the tax limitationsprovided by article 19 of chapter 79 of the Kansas Statutes Annotated,and amendments thereto, shall apply to such levies.

      History:   L. 1959, ch. 78, § 2; L. 1977, ch. 54, § 10; L.1979, ch. 52, § 49; L. 1981, ch. 173, § 23;L. 2008, ch. 109, § 27; July 1.