19-2752a.   Issuance of no-fund warrants foradditional revenue subsequentto bond election for sewer system and disposal plant; limitation; approval ofstate court of tax appeals; procedure.That whenever a main sewer district has been established under theprovisions of K.S.A. 19-2731 to 19-2752, both sections inclusive, andamendments thereto, and the question of theissuance of bonds for the purpose of providing revenue to be used toconstruct a main trunk sewer system with sewage disposal plant and allappurtenances thereto has been submitted to the qualified electors ofsuch main sewer district and at least 65% ofthe persons voting on said question shall have voted in favor of the issuanceof said bonds in the amount stated on the ballot, and after such electionthe governing body of such main sewer district was unable to immediatelycommence work on the construction of said main trunk sewer system andsewage disposal plant and appurtenances because of a shortage ofnecessary materials and labor and, as a result of such delay, the pricesof materials and labor needed for such construction and appurtenanceshave increased to such an extent that the original amount of bonds votedwill not provide sufficient revenue to meet the total cost of suchimprovements and appurtenances, and the governing body of such mainsewer district shall have adopted a resolution declaring such conditionsto exist, then the governing body of such main sewer district is herebyauthorized and empowered to issue no-fund warrants of such main sewerdistrict in an amount not exceeding six percent of the total amount ofbonds authorized by the vote of the electors of such main sewerdistrict, and the revenue derived from the issuance of said warrants maybe used by the governing body of said main sewer district to provideadditional funds to be used in paying the cost of constructing a maintrunk sewer system with sewage disposal plant and all appurtenancesthereto, except that no warrants shall be issued underthe authority conferred by this act unless, and until, an application shallhave been filed with the state court of tax appealsrequesting such court to authorize the issuance ofsuch warrants and the court shall enterits order under its seal authorizing the issuance of the same.

      The application to such court shall be signed andsworn to by the governing body of the main sewer district and shall reveal thefollowing: (1) Circumstances which caused the shortage in revenues; (2) adetailed statement showing why the original estimates of necessaryexpenditures for the improvements to be made are now insufficient; and(3) such other information as the court shall deemnecessary. If the court shall find the evidence submittedin writing in support of the application shows: (a) That the cost of labor andmaterials needed for the construction of such main trunk sewer system andsewage disposal plant and all appurtenances has increased since the bonds wereoriginally voted for said construction and improvements; and (b) thatthe governing body of such main sewer district does not have sufficientfunds available to pay the costs of necessary construction andimprovements, the court is empowered to authorize theissuance of warrants in an amount not in excess of the amount hereinbeforeauthorized. No order for the issuance of such warrants shall be madewithout a public hearing before the court and notice ofsuch hearing shall be published in two issues of a paper of general circulationwithin the main sewer district applying for such authority at least ten daysprior to such hearing. The notice shall be in such form as thecourt shall prescribe, and the expense of such publicationshall be borne by the main sewer district.

      Any taxpayer interested may file a written protest against suchapplication. When the authority to issue warrants under this section isgranted to a main sewer district, the governing body of such main sewerdistrict shall make a tax levy, at the first tax-levying period aftersuch warrants are issued, sufficient to pay such warrants and theinterest thereon, except that in lieu of making onlyone tax levy, the governing body, if it deems it advisable, may make a tax levyonce each year for not to exceed three years, in approximately equalinstallments, sufficient to pay such warrants and the interest thereon.Such tax levies shall be in addition to all other tax levies authorizedor limited by law. All warrants issued under the authority conferred bythis act shall be issued, bear interest, be in the form, registered andredeemed in the manner prescribed in K.S.A. 79-2940, and amendmentsthereto, and any surplus existing after theredemption of such warrants shall be handled in the mannerprescribed in K.S.A. 79-2940, and amendmentsthereto.

      History:   L. 1947, ch. 210, § 1;L. 2008, ch. 109, § 47; July 1.