12-17,103.   Same; bonds; source of revenue to pay bonds; petition andelection, when; effect of dissolution.(a) The governing body of the city, acting on and in behalf of thedistrict, may issue municipal improvement district bonds for the cost ofimprovements as defined by subsection (c) ofK.S.A. 12-1795, and amendments thereto. The principal of and interest on thebondsshall be payable: (1) From a levy of ad valorem taxes on all of thetaxable tangible property within the district; (2) in cases of revenueproducing improvements, from a pledge of the income and receipts derivedtherefrom; (3) in cities which receive revenue from a local option sales taxpursuantto K.S.A. 12-187 et seq., and amendments thereto, from a pledge ofa portion or all of the receipts derived from the tax; or (4) from anycombination of these methods. The bondsshall be issued in accordance with the general bond law but shall not begeneral obligations of the city. The bonds shall bear interest at a rate not toexceed the maximum rate of interest prescribed by K.S.A. 10-1009, andamendments thereto. In the event the district is dissolved as an operatingagency, the property in the district shall remain liable for any taxes leviedto pay any principal and interest on any bonds authorized, issued and stilloutstanding. No bonds shall be issued until a public hearing is held thereon inthe manner provided by K.S.A. 12-17,101a, andamendments thereto.

      (b)   In the event the governing body of a city proposes to issue suchbonds, the principal and interest for which are payable in whole or in partfrom a pledge of local option sales tax revenues, and the question of pledgingthe revenues received from the sales tax has not previously been submitted toand approved by the voters of the city, such proposition shall be publishedonce each week for two consecutive weeks in the official city newspaper. If,within 30 days after the last publication of the proposition, a petition isfiled with the county election officer signed by not less than 10% of theelectors of the city who voted in the last preceding general election of thecity requesting an election thereon, no such bonds shall be issued unless theproposition is submitted to and approved by a majority of the voters of thecity voting at an election held thereon. Any such election shall be called andheld in accordance with the provisions of K.S.A. 10-120, and amendmentsthereto, or in accordance with the provisions of the mail ballot electionact.

      History:   L. 1981, ch. 63, § 10; L. 1983, ch. 49, § 50;L. 1988, ch. 79, § 5;L. 1991, ch. 55, § 1; May 16.