12-825d.   Waterworks, fuel, power and lighting plants; use, dispositionand investment of revenues.Except as otherwise hereinafter provided, in any city of the first, secondor third class owning a waterworks,fuel, power or lighting plant, the revenue derived from the sale andconsumption of water, fuel, power or light shall not be paid out ordisbursed except for the purpose of operating, renewing or extending theplant or distribution system from which such revenue was derived, thepayment of interest on outstanding bonds issued for the construction,extension or purchase thereof, and the payment of the salaries of theemployees. At any time that there may be a surplus of such fund, itshall, if needed to redeem bonds, be quarterly placed in a sinking fund,which shall only be used for the purpose of redeeming bonds that may havebeen issued for acquiring, renewing or extending said plant or distributionsystem, or making renewals or extensions thereto. Whenany surplus of either the operating fund or sinking fund is not needed forany of the above stated purposes, said surpluses:

      (a)   May be transferred and merged into the city general revenue fund orany other fund or funds of such city; or

      (b)   upon approval of the voters as authorized by K.S.A. 12-825g, and amendmentsthereto, incities of the second class having a population of not less than sixthousand (6,000) and not more than twelve thousand (12,000) and which arelocated in a county having a total assessed taxable tangible valuation ofnot less than thirty-two million dollars ($32,000,000) and not more thanforty-five million dollars ($45,000,000), a part of such surpluses may beannually transferred, for a period not exceeding five years, to a specialfund, which shall be known as "the community and utility promotion fund,"but the total amount transferred to such fund in any one calendar yearshall not exceed (1) one percent (1%) of the gross income derived from thesale of water, fuel, power and light during the preceding calendar year bysuch city, or (2) ten thousand dollars ($10,000), whichever amount is thelesser, and at no time shall there be more than fifty thousand dollars($50,000) in said fund, and the moneys in said fund may be expended for thepurposes authorized by K.S.A. 12-825g, and amendments thereto; or

      (c)   such surpluses, in whole or in part, may be set aside in adepreciation reserve fund of the utility which may be used as hereinaboveprovided, and which may be invested in investments authorized by K.S.A.12-1675, and amendments thereto, in the manner prescribed therein or inUnited States government bonds orin municipal bonds of any county, township, city or school district inthe state of Kansas where the bondedindebtedness thereof does not exceed fifteen percent (15%) of its totalassessed valuation as shown by the last assessment preceding suchinvestment.

      History:   L. 1945, ch. 97, § 1; L. 1959, ch. 73, § 1; L. 1977,ch. 54, § 5; July 1.