19-3553.   Issuance of revenue bonds; conditions; fixing rates, feesand charges; agreements, covenants and restrictions.The governing body on behalf of the district may issue and sell revenuebonds to 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 public agenciesparticipating in the agreement. All revenue bonds issued under this actshall be signed by the president of the governing body of the districtand attested by the secretary of the governing body of the district andshall contain recitals stating the authority under which such bonds areissued and that they are to be paid by the district from the net revenuederived from the operation of the water supply system and not from anyother fund or source and that said bonds are negotiable. All suchbonds shall be registered in the office of the county clerk of eachcounty wherein such district is located and in the office of the statetreasurer and when so registered and issued shall import absoluteverity, and shall be conclusive in favor of all persons purchasing suchbonds, that all proceedings and conditions precedent have been had andperformed to authorize the issuance thereof. The provisions of K.S.A.10-112 shall not apply to any bonds issued under this act.

      Revenue bonds issued under this act shall have all of the qualitiesand incidents of negotiable instruments, shall mature serially over aperiod beginning not later than five (5) years after the date of thebonds and ending not later than forty (40) years after such date andshall bear interest at a rate not exceeding the maximum rate of interestprescribed by K.S.A. 10-1009. Such bonds may be in such denominations,may be in such form, may carry such registration and conversionprivileges, may be executed in such manner, may be payable in suchmedium of payment and may be subject to such terms of redemption, withor without premium, as may be provided by resolution of the governingbody. In no case shall the total amount of bonds issued hereunder be inexcess of the actual cost of the plan or program which shall include, inaddition to all expenses incurred in acquiring, constructing, orimproving the water supply system, all no-fund warrants issued under theprovisions of K.S.A. 19-3554 and unpaid at the time saidrevenue bonds are issued. No water district or county in which thewater district lies shall have any right or authority to levy taxes topay any of the principal or interest on any such bonds or any judgmentagainst the issuing water district on account thereof, and the provisionof K.S.A. 10-113 shall not apply to any bonds issued hereunder.

      The governing body shall by appropriate resolution make provisionsfor the payment of said bonds by fixing rates, fees and charges, for theuse of all services rendered by such water district, which rates, feesand charges shall be sufficient to pay the costs of operation,improvement and maintenance of the water supply system, to provide anadequate depreciation fund, provide an adequate sinking fund to retiresaid bonds and pay interest thereon when due, and to create reasonablereserves for such purposes. Said fees, rates or charges shall besufficient to allow for miscellaneous and emergency or unforeseenexpenses. The resolution of the governing body authorizing the issuanceof revenue bonds may include agreements, covenants or restrictionsdeemed necessary or advisable by the governing body to effect theefficient operation of the system and to safeguard the interests of theholders of the revenue bonds and to secure the payment of the bonds andthe interest thereon.

      History:   L. 1977, ch. 353, § 9; July 1.