13-2406.Sinking fund to pay bonded debt; investment; records and report.
It shall be the duty of the board of commissioners to create
and maintain a sinking fund for the payment of the bonded indebtedness of
such city arising from the purchase of the waterworks, by laying
aside from the revenues of the department an amount equal to
not less than 2% per annum upon the
gross bonded debt. The board of commissioners shall use such sinking
fund in the purchase and cancellation from time to time of bonds issued
to pay the purchase price of the waterworks but shall not pay
for any such bonds any greater sum than par, nor more than the actual market
price thereof at the time of purchasing the same, if less than par. All
bonds purchased by the board shall be canceled and retired by the board.
If the board of commissioners are unable to purchase
any of the bonds on such terms, then it shall be the duty of the
board to invest the moneys of the sinking
fund in investments authorized by K.S.A. 12-1675, and amendments thereto,
in the manner prescribed therein or in bonds of the state of Kansas, or
general improvement bonds of cities of the first or second class, or bonds
of any county in this state wherein a city of the first or second class
is located or bonds of unified school districts in this state. Any
municipal bonds purchased shall bear no less than 3% interest per annum
except that any municipality may purchase
its own bonds for sinking fund investments which bear less than the maximum
rate of interest prescribed by K.S.A. 10-1009, and amendments
thereto. The board shall not buy the bonds of any city, wherein the outstanding
bonded city indebtedness, exclusive of the bonded debt created for the purchase
or extension of any waterworks system of any bonds for the payment of which
special assessments are levied exceeds 15%
of its assessed valuation as fixed by such city. In making such investment,
the board shall not pay for any
such bonds any greater sum than par, nor more than the actual market price
thereof at the time of purchasing the same, if less than par, except by
unanimous vote of the board.
It shall be the duty of the city attorney to examine the validity of all
such bonds and report thereon in writing to the board of commissioners,
and no bonds shall be purchased by the board until they have
been approved and
found valid by the city attorney. It shall be the duty of the
secretary to keep a permanent record of the amounts turned into
the sinking fund and a full description of all bonded indebtedness of
the waterworks department canceled and retired, and a full
description of all bonds bought for the sinking fund, the date
of the bonds, rate of interest, when payable, number of any
coupons attached, when bought, for whom purchased and the price or
rate paid therefor.
Immediately upon the receipt of any such bonds purchased for
the sinking fund, the city auditor or city clerk, shall cause each bond
and any coupons appertaining thereto to be plainly stamped
upon the back thereof, "Property of the waterworks sinking fund of the city
of _______________." The auditor or city clerk shall also keep
a record of each of the bonds and any coupon thereto
attached, which record shall show amount, date, rate of interest of such
bond, when and where payable, the date, amount and the number of each
coupon and when payable. The bonds shall be kept by the city treasurer.
The board of commissioners shall not sell any of such bonds for less than
their par value. The city auditor or city clerk shall also keep a duplicate
record of the payment of all such bonds or coupons, and all moneys received
from the payment of any such bonds and interest thereon
shall be reinvested as a part of the sinking fund as hereinbefore
provided. It shall be the duty of the secretary to report on January
1 of each year the amount of outstanding indebtedness of the
waterworks department and an itemized statement of
the moneys and bonds in the sinking fund and the bonded indebtedness
paid off during the preceding year.
History: L. 1907, ch. 114, § 104; L. 1913, ch. 85, § 8; R.S.
1923, § 13-2406; L. 1935, ch. 116, § 1; L. 1970, ch. 64, § 101;
L. 1977, ch. 54, § 16; L. 1983, ch. 49, § 66; May 12.
13-2406.Sinking fund to pay bonded debt; investment; records and report.
It shall be the duty of the board of commissioners to create
and maintain a sinking fund for the payment of the bonded indebtedness of
such city arising from the purchase of the waterworks, by laying
aside from the revenues of the department an amount equal to
not less than 2% per annum upon the
gross bonded debt. The board of commissioners shall use such sinking
fund in the purchase and cancellation from time to time of bonds issued
to pay the purchase price of the waterworks but shall not pay
for any such bonds any greater sum than par, nor more than the actual market
price thereof at the time of purchasing the same, if less than par. All
bonds purchased by the board shall be canceled and retired by the board.
If the board of commissioners are unable to purchase
any of the bonds on such terms, then it shall be the duty of the
board to invest the moneys of the sinking
fund in investments authorized by K.S.A. 12-1675, and amendments thereto,
in the manner prescribed therein or in bonds of the state of Kansas, or
general improvement bonds of cities of the first or second class, or bonds
of any county in this state wherein a city of the first or second class
is located or bonds of unified school districts in this state. Any
municipal bonds purchased shall bear no less than 3% interest per annum
except that any municipality may purchase
its own bonds for sinking fund investments which bear less than the maximum
rate of interest prescribed by K.S.A. 10-1009, and amendments
thereto. The board shall not buy the bonds of any city, wherein the outstanding
bonded city indebtedness, exclusive of the bonded debt created for the purchase
or extension of any waterworks system of any bonds for the payment of which
special assessments are levied exceeds 15%
of its assessed valuation as fixed by such city. In making such investment,
the board shall not pay for any
such bonds any greater sum than par, nor more than the actual market price
thereof at the time of purchasing the same, if less than par, except by
unanimous vote of the board.
It shall be the duty of the city attorney to examine the validity of all
such bonds and report thereon in writing to the board of commissioners,
and no bonds shall be purchased by the board until they have
been approved and
found valid by the city attorney. It shall be the duty of the
secretary to keep a permanent record of the amounts turned into
the sinking fund and a full description of all bonded indebtedness of
the waterworks department canceled and retired, and a full
description of all bonds bought for the sinking fund, the date
of the bonds, rate of interest, when payable, number of any
coupons attached, when bought, for whom purchased and the price or
rate paid therefor.
Immediately upon the receipt of any such bonds purchased for
the sinking fund, the city auditor or city clerk, shall cause each bond
and any coupons appertaining thereto to be plainly stamped
upon the back thereof, "Property of the waterworks sinking fund of the city
of _______________." The auditor or city clerk shall also keep
a record of each of the bonds and any coupon thereto
attached, which record shall show amount, date, rate of interest of such
bond, when and where payable, the date, amount and the number of each
coupon and when payable. The bonds shall be kept by the city treasurer.
The board of commissioners shall not sell any of such bonds for less than
their par value. The city auditor or city clerk shall also keep a duplicate
record of the payment of all such bonds or coupons, and all moneys received
from the payment of any such bonds and interest thereon
shall be reinvested as a part of the sinking fund as hereinbefore
provided. It shall be the duty of the secretary to report on January
1 of each year the amount of outstanding indebtedness of the
waterworks department and an itemized statement of
the moneys and bonds in the sinking fund and the bonded indebtedness
paid off during the preceding year.
History: L. 1907, ch. 114, § 104; L. 1913, ch. 85, § 8; R.S.
1923, § 13-2406; L. 1935, ch. 116, § 1; L. 1970, ch. 64, § 101;
L. 1977, ch. 54, § 16; L. 1983, ch. 49, § 66; May 12.
13-2406.Sinking fund to pay bonded debt; investment; records and report.
It shall be the duty of the board of commissioners to create
and maintain a sinking fund for the payment of the bonded indebtedness of
such city arising from the purchase of the waterworks, by laying
aside from the revenues of the department an amount equal to
not less than 2% per annum upon the
gross bonded debt. The board of commissioners shall use such sinking
fund in the purchase and cancellation from time to time of bonds issued
to pay the purchase price of the waterworks but shall not pay
for any such bonds any greater sum than par, nor more than the actual market
price thereof at the time of purchasing the same, if less than par. All
bonds purchased by the board shall be canceled and retired by the board.
If the board of commissioners are unable to purchase
any of the bonds on such terms, then it shall be the duty of the
board to invest the moneys of the sinking
fund in investments authorized by K.S.A. 12-1675, and amendments thereto,
in the manner prescribed therein or in bonds of the state of Kansas, or
general improvement bonds of cities of the first or second class, or bonds
of any county in this state wherein a city of the first or second class
is located or bonds of unified school districts in this state. Any
municipal bonds purchased shall bear no less than 3% interest per annum
except that any municipality may purchase
its own bonds for sinking fund investments which bear less than the maximum
rate of interest prescribed by K.S.A. 10-1009, and amendments
thereto. The board shall not buy the bonds of any city, wherein the outstanding
bonded city indebtedness, exclusive of the bonded debt created for the purchase
or extension of any waterworks system of any bonds for the payment of which
special assessments are levied exceeds 15%
of its assessed valuation as fixed by such city. In making such investment,
the board shall not pay for any
such bonds any greater sum than par, nor more than the actual market price
thereof at the time of purchasing the same, if less than par, except by
unanimous vote of the board.
It shall be the duty of the city attorney to examine the validity of all
such bonds and report thereon in writing to the board of commissioners,
and no bonds shall be purchased by the board until they have
been approved and
found valid by the city attorney. It shall be the duty of the
secretary to keep a permanent record of the amounts turned into
the sinking fund and a full description of all bonded indebtedness of
the waterworks department canceled and retired, and a full
description of all bonds bought for the sinking fund, the date
of the bonds, rate of interest, when payable, number of any
coupons attached, when bought, for whom purchased and the price or
rate paid therefor.
Immediately upon the receipt of any such bonds purchased for
the sinking fund, the city auditor or city clerk, shall cause each bond
and any coupons appertaining thereto to be plainly stamped
upon the back thereof, "Property of the waterworks sinking fund of the city
of _______________." The auditor or city clerk shall also keep
a record of each of the bonds and any coupon thereto
attached, which record shall show amount, date, rate of interest of such
bond, when and where payable, the date, amount and the number of each
coupon and when payable. The bonds shall be kept by the city treasurer.
The board of commissioners shall not sell any of such bonds for less than
their par value. The city auditor or city clerk shall also keep a duplicate
record of the payment of all such bonds or coupons, and all moneys received
from the payment of any such bonds and interest thereon
shall be reinvested as a part of the sinking fund as hereinbefore
provided. It shall be the duty of the secretary to report on January
1 of each year the amount of outstanding indebtedness of the
waterworks department and an itemized statement of
the moneys and bonds in the sinking fund and the bonded indebtedness
paid off during the preceding year.
History: L. 1907, ch. 114, § 104; L. 1913, ch. 85, § 8; R.S.
1923, § 13-2406; L. 1935, ch. 116, § 1; L. 1970, ch. 64, § 101;
L. 1977, ch. 54, § 16; L. 1983, ch. 49, § 66; May 12.