19-3532.   Issuance of revenue bonds; conditions; limitations;fixing rates, fees and charges; agreements, covenants and restrictions.The water district may issue and sell revenue bonds without an electionto finance the cost of acquisition, construction, reconstruction,alteration, repair, improvement, extension or enlargement of the watersupply system. Such revenue bonds are hereby made a lien on the watersupply system and on the revenues produced from such water supplysystem, but shall not be general obligations of the issuing waterdistrict. All revenue bonds issued under this act shall be signed by thepresident of the district and attested by the secretary of the districtand shall contain recitals stating the authority under which such bondsare issued and that they are to be paid by the water district from thenet revenue derived from the operation of the water supply system andnot from any other fund or source and that the bonds are negotiable.All such bonds shall be registered in the office of the county clerk andin the office of the state auditor and when so registered and issuedshall import absolute verity, and shall be conclusive in favor of allpersons purchasing such bonds, that all proceedings and conditionsprecedent have been had and performed to authorize the issuance thereof.The provisions of K.S.A. 10-112 shall not apply to any bonds issuedunder this act.

      Revenue bonds issued under this act shall mature not later than 40years after the date of the bonds, may besubject to redemption prior to maturity, with or without premium, atsuch times and upon such conditions as may be provided by the board; andshall bear interest at a rate not to exceed the maximum rate of interestprescribed by K.S.A. 10-1009, and amendmentsthereto. Theboard may sell such bonds in such manner and for such price as it determineswill best effect the purposes of this act. In no case shallthe total amount received therefrom be in excess of theactual cost of the plan orprogram which shall include, in addition to all expenses incurred inacquiring, constructing or improving the water supply system, allno-fund warrants issued under the provisions of K.S.A. 19-3533, and amendmentsthereto,and unpaid at the time the revenue bonds are issued and allcosts of operation and maintenance of such water supply system estimatedto be necessary for a period of two years immediately following theacquisition, construction or improvement of such system to be financedout of the proceeds of the reserve bonds. No water district or countyin which the water district lies shall have any right or authority tolevy taxes to pay any of the principal of or interest on any such bondsor any judgment against the issuing water district on account thereof,and the provision of K.S.A. 10-113, and amendments thereto, shall notapply to any bonds issuedhereunder.

      The board shall by appropriate resolution make provisions for thepayment of such bonds by fixing rates, fees and charges, for the use ofall services rendered by such water district, which rates, fees andcharges shall be sufficient to pay the costs of operation, improvementand maintenance of the water supply system, to provide an adequatedepreciation fund, provide an adequate sinking fund to retire such bondsand pay interest thereon when due, and to create reasonable reserves forsuch purposes. The fees, rates or charges shall be sufficient to allowfor miscellaneous and emergency or unforeseen expenses. The resolutionof the board authorizing the issuance of revenue bonds may establishlimitations upon the issuance of additional revenue bonds payable fromthe revenues of the district's water supply system or upon the rights ofthe holders of such additional bonds, and may provide that additionalrevenue bonds shall stand on a parity as to the revenues of the waterdistrict and in all other respects with revenue bonds previously issuedon such conditions as specified by the board in such resolution.Such resolution may include other agreements, covenants or restrictionsdeemed necessary or advisable by the board to effect the efficientoperation of the system and to safeguard the interests of the holders ofthe revenue bonds and to secure the payment of the bonds and theinterest thereon.

      History:   L. 1961, ch. 473, § 11; L. 1970, ch. 64, §67; L. 1983, ch. 49, § 72; May 12.