13-2423.   Same; sinking fund to pay bonds;investment;records and reports.It shall be the duty of the waterworks board to use the sinking fundsherein provided for in the purchase and cancellation from time to timeof bonds issued to pay the purchase price of such waterworks plant but theboard shall not pay for any such bonds any greater sum than par,nor more than the actual market price thereof at the time of purchasingthe same if less than par. All bonds purchased by the board shall be canceledandretired by the board. If the board is unable to purchase any suchbonds, then it shall invest the moneys ofthe sinkingfunds in investments authorized by K.S.A. 12-1675, and amendmentsthereto, in the manner prescribed therein or in bonds of the state ofKansas, or general improvement bonds of cities of the first and secondclass, or bonds of any county in this state wherein a city of the firstor second class is located, or bonds of unified school districts of thisstate. Any municipal bonds purchased by the board shall bear not less than1% per annum. The board shall not buy the bonds of any city,wherein the outstanding bonded city indebtedness, exclusive of thebonded debt created for the purchase or extension of waterworks plant,exceeds 15% of its assessed valuation for the precedingyear. In making such investment the waterworks board shall not, exceptby unanimous vote, pay for any such bonds any greater sum than par, normore than the actual market price thereof at the time of purchasing thesame if less than par. 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 waterworks board to keep a permanent record of the accounts turnedinto the sinking fund, and a full description of all bondedindebtedness canceled and retired, and a full description of all bondsbought for the sinking fund, the date of the bonds, rate of interest,when payable, number of any coupons attached, when bought, from whompurchased, and the price or rate paid therefor. The manager ofcollections and accounts shall cause to be stamped upon the back of eachof the bonds the words, "Property of the waterworks plant sinking fundof the city of __________." The bonds shall be kept by the citytreasurer, and the board shall not sell any such bonds for less thantheir par value. The city auditor or city clerk shall also keep aduplicate record of the payment of all such bonds or coupons, and allmoney received from the payment of all such bonds and interest thereon shall bereinvested as a part of the sinking fund as hereinbefore provided. Itshall be the duty of the manager of collections and accounts of thewaterworks board to report on January 1 of each year the amount ofoutstanding indebtedness of the waterworks plant, and to furnish anitemized statement of the moneys and the bonded indebtedness paid offduring the preceding year.

      History:   L. 1937, ch. 143, § 10; L. 1941, ch. 134, § 3; L. 1977,ch. 54, § 17; L. 1983, ch. 49, § 67; May 12.