13-1229.   Same; use and investment of sinking funds; record and report.It shall be the duty of the board of public utilities to use the sinkingfunds herein provided for in the purchase and cancellation from time totime of bonds issued for the purpose of purchasing, improving orextending such waterworks and/or electric-light plants, or to place suchbonds in the sinking fund of the water department or the electric-lightdepartment at the option of the board of public utilities.

      If the board shall be unable to purchase any such bonds, then itshall be its duty to invest the moneys of said sinking funds ininvestments authorized by K.S.A. 12-1675, and amendments thereto, in themanner prescribed therein or in bonds of the state of Kansas, or generalimprovement bonds of cities of the first and second class, or bonds ofany county within the state wherein a city of the first or second classis located, or bonds of unified school districts of this state, orbonds issued or guaranteed by the United States government. All bonds sopurchased by the board shall bear the highest rate of interestobtainable at the time of the purchase of the same by the board. Saidboard shall not buy the bonds of any city wherein the outstanding bondedcity indebtedness, exclusive of the bonded debt, created for thepurchase or extension of waterworks and/or electric-light plants,exceeds ten percent of its assessed valuation for the preceding year.Said board of public utilities shall not, except by a four-fifths voteof the members thereof, pay for any bonds any greater sum than par, norshall they pay more than the actual market price thereof at the time ofpurchasing the same. No such bonds shall be purchased until they havebeen approved in writing and found valid by a competent attorney.

      It shall be the duty of the manager of collections and accounts ofthe board of public utilities to keep a permanent record of the accountsturned into said sinking fund, and a full description of all bondedindebtedness canceled and retired, and a full description of all bondsbought for said sinking fund, the date of said bonds, rate of interest,when payable, number of coupons attached, when bought, from whompurchased, and the price or rate paid therefor; and the manager ofcollections and accounts shall cause to be stamped upon the back of eachof said bonds the words, "Property of the waterworks and/orelectric-light plant sinking fund of the city of __________." Said bondsshall be kept by the city treasurer, and the board shall not sell anysuch bonds for less than their par value.

      The city auditor or city clerk shall also keep a duplicate record ofthe payment of all such bonds or coupons, and all money received fromthe payment of all such bonds or coupons shall be reinvested as a partof the sinking fund as hereinbefore provided. It shall be the duty ofthe manager of collections and accounts of the board of public utilitiesto report on January 1 of each year the amount of outstandingindebtedness of the waterworks and/or electric-light plants, and tofurnish an itemized statement of the moneys and the bonded indebtednesspaid off during the preceding year.

      History:   L. 1929, ch. 126, § 10; L. 1933, ch. 125, § 1; L. 1935,ch. 110, § 1; L. 1977, ch. 54, § 12; July 1.