Article 35.--WATER SUPPLY AND DISTRIBUTION DISTRICTS
19-3516.Issuance, sale, registration and terms of
revenue bonds;
fixing of service rates and charges; deposit and use of revenues;
sinking fund; liens; annual audits; bids, when; exceptions; lease purchase
agreements; finance leases.
(a) Any water district board may issue and sell revenue bonds to finance the
cost of acquisition, construction, reconstruction, alteration, repair,
improvement, extension or enlargement of any such water supply and
distribution system. The board shall fix by resolution such rates, fees and
charges for the services furnished by such water supply and distribution
system as may be reasonable and necessary and provide for the manner of
collecting and disbursing such revenues subject to the limitations
hereinafter contained.
Revenues derived from the operation of any such water supply and
distribution system shall be deposited in a responsible bank within the
county in which the greatest portion of such water district is located
and the deposits shall be governed by article 14 of chapter 9 of the
Kansas Statutes Annotated and shall not be used except for the purpose
of: (1) Paying wages and salaries of all officers and employees, (2)
paying the cost of operation, (3) paying the cost of maintenance,
extension and improvement of such water supply and distribution system,
(4) providing an adequate depreciation fund, and (5) creating reasonable
reserves for such purposes. All revenues over and above those necessary
for the above enumerated purposes shall be placed in a reserve fund
which, together with any moneys not currently needed which have been set
aside for the purposes described in (4) and (5) above, may be
invested in accordance with the provisions of K.S.A. 10-122,
and amendments thereto, or K.S.A. 10-131, and amendments
thereto. Such reserve fund shall be used solely for improving,
extending or enlarging the district's water system or for the retirement
of revenue bonds issued hereunder and the payment of interest thereon.
Such revenue bonds are hereby made a lien on the water supply and
distribution system and on the revenues produced from such water supply
and distribution system but shall not be general obligations of the
issuing water district. Such revenue bonds shall not be taken into
account or in any way be a limitation upon the power of the water
district to issue bonds for any other purpose. All revenue bonds issued
under this act shall be signed by the chairperson of the issuing water
district board and attested by the secretary and shall contain recitals
stating the authority under which such bonds are issued; that they are
issued in conformity with the provisions, restrictions and limitations
of that authority; that such bonds are to be paid by the issuing water
district from the revenues derived from the rates, fees or charges
herein mentioned and not from any other fund or source; that the same
have been registered in the office of the county clerk of the various
counties in which the issuing water district is located and in the
office of the treasurer of the state of Kansas, respectively; and that
such bonds are negotiable. All such bonds, when registered and issued,
as herein provided, shall import absolute verity, and shall be
conclusive in favor of all persons purchasing such bonds, that all
proceedings and conditions precedent have been had and performed to
authorize the issuance thereof. The provisions of K.S.A. 10-112, and
amendments thereto, shall not apply to any bonds issued under this act.
(b) Revenue bonds issued under this act shall mature not later than 40
years after the date of the bonds; may be
subject to redemption prior to maturity, with or without premium, at
such times and upon such conditions as may be provided by the water
district board; and shall bear interest at a rate not to exceed the
maximum rate of interest prescribed by K.S.A. 10-1009, and amendments
thereto. The board may sell such bonds in such
manner and for such price
as it determines will best effect the purposes of this act. In no
case where revenue bonds are issued under this act shall the total
amount received therefrom be in excess of the actual cost
of the plan or program
which includes, in addition to all expenses incurred in the
acquiring of a water supply and distribution system, all expenses
incurred prior to and including the bond election, the no-fund warrants
outstanding under the provisions of K.S.A. 19-3505a, and amendments thereto,
and unpaid at the
time such revenue bonds are issued and all costs of operation and
maintenance of such water supply and distribution system estimated to be
necessary for a period of two years immediately following the
acquisition of such system and the amount necessary to pay the salaries
of the water district board due from the date the first member of the
first board is elected. Whenever any such water district board has
sufficient revenues to pay the operational and maintenance cost and the
board members' salaries, then such expenses shall be paid out of such
revenues and any surplus funds remaining from the sale of revenue bonds
shall be transferred to the revenue bond sinking fund of the water
district. No water district or county in which a portion of such water
district lies shall have any right or authority to levy taxes to pay any
of the principal of or interest on any such bonds or any judgment
against the issuing water district on account thereof, and the provisions
of K.S.A. 10-113, and amendments thereto, shall not apply to any bonds
issued hereunder. All
water district boards created by this act by appropriate
resolution shall make provisions for the payment of such bonds by fixing
rates, fees and charges, for the use of all services rendered by such
water district, which rates, fees and charges shall be sufficient to pay
the wages and salaries of all officers and employees and the costs of
operation, improvement and maintenance of the water supply and
distribution system; to provide an adequate depreciation fund and an
adequate sinking fund to retire such bonds and pay the interest thereon
when due; and to create reasonable reserves for such purposes. Such
fees, rates or charges shall be sufficient to allow for miscellaneous
and emergency or unforeseen expenses. The resolution of the water
district board authorizing the issuance of revenue bonds may establish
limitations upon the issuance of additional revenue bonds payable from
the revenues of the district's water supply and distribution system or
upon the rights of the holders of such additional bonds and may provide
that additional revenue bonds shall stand on a parity as to the revenues
of the water district and in all other respects with revenue bonds
previously issued on such conditions as specified by the board in
such resolution. Such resolution may include other agreements,
covenants or restrictions deemed necessary or advisable by the district
board to effect the efficient operation of the district's system and to
safeguard the interests of the holders of the revenue bonds and to
secure the payment of the bonds and the interest thereon.
(c) The water district board shall cause an audit to be made annually by
a licensed municipal public accountant or by a certified public
accountant of the operations of any water
supply and distribution system created hereunder for which revenue bonds
have been issued by any water district, and, if the audit
discloses that proper provision has not been made for all of the requirements of
this section, the water district board shall proceed promptly to cause
rates to be charged for the water supply and distribution services
rendered which will adequately provide for the requirements set out
herein. Within 30 days after the completion of such audit, a
copy of the audit shall be filed with the county clerks of the various
counties in which such water district is located, and such audit shall
be open to public inspection.
(d) The water district board, by a majority vote of the members thereof,
may contract for repairs, alterations, extensions or improvements of the
water supply and distribution system and issue revenue bonds to pay the
cost thereof without submitting to a vote of the electors of such water
district the proposal to contract for the making of such repairs,
alterations, extension and improvements and to issue revenue bonds to
pay the costs thereof. All contracts for any construction of all or
part of the water system, or for repairs, extensions, enlargements or
improvements to any such water supply and distribution system created
under this act, the cost of which exceeds $25,000 shall be awarded on
a public letting by the water district
board to the lowest responsible bidder, and in the manner provided by
K.S.A. 19-214, 19-215 and 19-216, and amendments thereto, except that
the required notice of
letting contracts shall be seven days if the cost does not exceed $100,000
and 30 days if the cost exceeds $100,000. Whenever the board finds that
an unforeseen occurrence or condition has created a public exigency
requiring immediate delivery of materials or performance of services, it
may declare an emergency and shorten or entirely dispense with the bidding
procedure.
(e) Where goods for use by the water district can be more advantageously
acquired by lease-purchase or financing leases than by full initial payment of
the purchase price or conventional leasing that is neither a sale nor creates a
security interest, the water district board, by a majority vote of the members
thereof, may approve the use of lease-purchases or financing leases or
authorize the general manager to make such determinations and approvals within
any limitations designed by the board.
History: L. 1951, ch. 240, § 16;
L. 1957, ch. 192, § 10;
L. 1970, ch. 64, § 66;
L. 1975, ch. 170, § 5;
L. 1977, ch. 54, § 31;
L. 1983, ch. 49, § 71;
L. 1984, ch. 106, § 1;
L. 1985, ch. 101, § 1;
L. 1987, ch. 103, § 2;
L. 1998, ch. 47, § 1; July 1.
Article 35.--WATER SUPPLY AND DISTRIBUTION DISTRICTS
19-3516.Issuance, sale, registration and terms of
revenue bonds;
fixing of service rates and charges; deposit and use of revenues;
sinking fund; liens; annual audits; bids, when; exceptions; lease purchase
agreements; finance leases.
(a) Any water district board may issue and sell revenue bonds to finance the
cost of acquisition, construction, reconstruction, alteration, repair,
improvement, extension or enlargement of any such water supply and
distribution system. The board shall fix by resolution such rates, fees and
charges for the services furnished by such water supply and distribution
system as may be reasonable and necessary and provide for the manner of
collecting and disbursing such revenues subject to the limitations
hereinafter contained.
Revenues derived from the operation of any such water supply and
distribution system shall be deposited in a responsible bank within the
county in which the greatest portion of such water district is located
and the deposits shall be governed by article 14 of chapter 9 of the
Kansas Statutes Annotated and shall not be used except for the purpose
of: (1) Paying wages and salaries of all officers and employees, (2)
paying the cost of operation, (3) paying the cost of maintenance,
extension and improvement of such water supply and distribution system,
(4) providing an adequate depreciation fund, and (5) creating reasonable
reserves for such purposes. All revenues over and above those necessary
for the above enumerated purposes shall be placed in a reserve fund
which, together with any moneys not currently needed which have been set
aside for the purposes described in (4) and (5) above, may be
invested in accordance with the provisions of K.S.A. 10-122,
and amendments thereto, or K.S.A. 10-131, and amendments
thereto. Such reserve fund shall be used solely for improving,
extending or enlarging the district's water system or for the retirement
of revenue bonds issued hereunder and the payment of interest thereon.
Such revenue bonds are hereby made a lien on the water supply and
distribution system and on the revenues produced from such water supply
and distribution system but shall not be general obligations of the
issuing water district. Such revenue bonds shall not be taken into
account or in any way be a limitation upon the power of the water
district to issue bonds for any other purpose. All revenue bonds issued
under this act shall be signed by the chairperson of the issuing water
district board and attested by the secretary and shall contain recitals
stating the authority under which such bonds are issued; that they are
issued in conformity with the provisions, restrictions and limitations
of that authority; that such bonds are to be paid by the issuing water
district from the revenues derived from the rates, fees or charges
herein mentioned and not from any other fund or source; that the same
have been registered in the office of the county clerk of the various
counties in which the issuing water district is located and in the
office of the treasurer of the state of Kansas, respectively; and that
such bonds are negotiable. All such bonds, when registered and issued,
as herein provided, shall import absolute verity, and shall be
conclusive in favor of all persons purchasing such bonds, that all
proceedings and conditions precedent have been had and performed to
authorize the issuance thereof. The provisions of K.S.A. 10-112, and
amendments thereto, shall not apply to any bonds issued under this act.
(b) Revenue bonds issued under this act shall mature not later than 40
years after the date of the bonds; may be
subject to redemption prior to maturity, with or without premium, at
such times and upon such conditions as may be provided by the water
district board; and shall bear interest at a rate not to exceed the
maximum rate of interest prescribed by K.S.A. 10-1009, and amendments
thereto. The board may sell such bonds in such
manner and for such price
as it determines will best effect the purposes of this act. In no
case where revenue bonds are issued under this act shall the total
amount received therefrom be in excess of the actual cost
of the plan or program
which includes, in addition to all expenses incurred in the
acquiring of a water supply and distribution system, all expenses
incurred prior to and including the bond election, the no-fund warrants
outstanding under the provisions of K.S.A. 19-3505a, and amendments thereto,
and unpaid at the
time such revenue bonds are issued and all costs of operation and
maintenance of such water supply and distribution system estimated to be
necessary for a period of two years immediately following the
acquisition of such system and the amount necessary to pay the salaries
of the water district board due from the date the first member of the
first board is elected. Whenever any such water district board has
sufficient revenues to pay the operational and maintenance cost and the
board members' salaries, then such expenses shall be paid out of such
revenues and any surplus funds remaining from the sale of revenue bonds
shall be transferred to the revenue bond sinking fund of the water
district. No water district or county in which a portion of such water
district lies shall have any right or authority to levy taxes to pay any
of the principal of or interest on any such bonds or any judgment
against the issuing water district on account thereof, and the provisions
of K.S.A. 10-113, and amendments thereto, shall not apply to any bonds
issued hereunder. All
water district boards created by this act by appropriate
resolution shall make provisions for the payment of such bonds by fixing
rates, fees and charges, for the use of all services rendered by such
water district, which rates, fees and charges shall be sufficient to pay
the wages and salaries of all officers and employees and the costs of
operation, improvement and maintenance of the water supply and
distribution system; to provide an adequate depreciation fund and an
adequate sinking fund to retire such bonds and pay the interest thereon
when due; and to create reasonable reserves for such purposes. Such
fees, rates or charges shall be sufficient to allow for miscellaneous
and emergency or unforeseen expenses. The resolution of the water
district board authorizing the issuance of revenue bonds may establish
limitations upon the issuance of additional revenue bonds payable from
the revenues of the district's water supply and distribution system or
upon the rights of the holders of such additional bonds and may provide
that additional revenue bonds shall stand on a parity as to the revenues
of the water district and in all other respects with revenue bonds
previously issued on such conditions as specified by the board in
such resolution. Such resolution may include other agreements,
covenants or restrictions deemed necessary or advisable by the district
board to effect the efficient operation of the district's system and to
safeguard the interests of the holders of the revenue bonds and to
secure the payment of the bonds and the interest thereon.
(c) The water district board shall cause an audit to be made annually by
a licensed municipal public accountant or by a certified public
accountant of the operations of any water
supply and distribution system created hereunder for which revenue bonds
have been issued by any water district, and, if the audit
discloses that proper provision has not been made for all of the requirements of
this section, the water district board shall proceed promptly to cause
rates to be charged for the water supply and distribution services
rendered which will adequately provide for the requirements set out
herein. Within 30 days after the completion of such audit, a
copy of the audit shall be filed with the county clerks of the various
counties in which such water district is located, and such audit shall
be open to public inspection.
(d) The water district board, by a majority vote of the members thereof,
may contract for repairs, alterations, extensions or improvements of the
water supply and distribution system and issue revenue bonds to pay the
cost thereof without submitting to a vote of the electors of such water
district the proposal to contract for the making of such repairs,
alterations, extension and improvements and to issue revenue bonds to
pay the costs thereof. All contracts for any construction of all or
part of the water system, or for repairs, extensions, enlargements or
improvements to any such water supply and distribution system created
under this act, the cost of which exceeds $25,000 shall be awarded on
a public letting by the water district
board to the lowest responsible bidder, and in the manner provided by
K.S.A. 19-214, 19-215 and 19-216, and amendments thereto, except that
the required notice of
letting contracts shall be seven days if the cost does not exceed $100,000
and 30 days if the cost exceeds $100,000. Whenever the board finds that
an unforeseen occurrence or condition has created a public exigency
requiring immediate delivery of materials or performance of services, it
may declare an emergency and shorten or entirely dispense with the bidding
procedure.
(e) Where goods for use by the water district can be more advantageously
acquired by lease-purchase or financing leases than by full initial payment of
the purchase price or conventional leasing that is neither a sale nor creates a
security interest, the water district board, by a majority vote of the members
thereof, may approve the use of lease-purchases or financing leases or
authorize the general manager to make such determinations and approvals within
any limitations designed by the board.
History: L. 1951, ch. 240, § 16;
L. 1957, ch. 192, § 10;
L. 1970, ch. 64, § 66;
L. 1975, ch. 170, § 5;
L. 1977, ch. 54, § 31;
L. 1983, ch. 49, § 71;
L. 1984, ch. 106, § 1;
L. 1985, ch. 101, § 1;
L. 1987, ch. 103, § 2;
L. 1998, ch. 47, § 1; July 1.
Article 35.--WATER SUPPLY AND DISTRIBUTION DISTRICTS
19-3516.Issuance, sale, registration and terms of
revenue bonds;
fixing of service rates and charges; deposit and use of revenues;
sinking fund; liens; annual audits; bids, when; exceptions; lease purchase
agreements; finance leases.
(a) Any water district board may issue and sell revenue bonds to finance the
cost of acquisition, construction, reconstruction, alteration, repair,
improvement, extension or enlargement of any such water supply and
distribution system. The board shall fix by resolution such rates, fees and
charges for the services furnished by such water supply and distribution
system as may be reasonable and necessary and provide for the manner of
collecting and disbursing such revenues subject to the limitations
hereinafter contained.
Revenues derived from the operation of any such water supply and
distribution system shall be deposited in a responsible bank within the
county in which the greatest portion of such water district is located
and the deposits shall be governed by article 14 of chapter 9 of the
Kansas Statutes Annotated and shall not be used except for the purpose
of: (1) Paying wages and salaries of all officers and employees, (2)
paying the cost of operation, (3) paying the cost of maintenance,
extension and improvement of such water supply and distribution system,
(4) providing an adequate depreciation fund, and (5) creating reasonable
reserves for such purposes. All revenues over and above those necessary
for the above enumerated purposes shall be placed in a reserve fund
which, together with any moneys not currently needed which have been set
aside for the purposes described in (4) and (5) above, may be
invested in accordance with the provisions of K.S.A. 10-122,
and amendments thereto, or K.S.A. 10-131, and amendments
thereto. Such reserve fund shall be used solely for improving,
extending or enlarging the district's water system or for the retirement
of revenue bonds issued hereunder and the payment of interest thereon.
Such revenue bonds are hereby made a lien on the water supply and
distribution system and on the revenues produced from such water supply
and distribution system but shall not be general obligations of the
issuing water district. Such revenue bonds shall not be taken into
account or in any way be a limitation upon the power of the water
district to issue bonds for any other purpose. All revenue bonds issued
under this act shall be signed by the chairperson of the issuing water
district board and attested by the secretary and shall contain recitals
stating the authority under which such bonds are issued; that they are
issued in conformity with the provisions, restrictions and limitations
of that authority; that such bonds are to be paid by the issuing water
district from the revenues derived from the rates, fees or charges
herein mentioned and not from any other fund or source; that the same
have been registered in the office of the county clerk of the various
counties in which the issuing water district is located and in the
office of the treasurer of the state of Kansas, respectively; and that
such bonds are negotiable. All such bonds, when registered and issued,
as herein provided, shall import absolute verity, and shall be
conclusive in favor of all persons purchasing such bonds, that all
proceedings and conditions precedent have been had and performed to
authorize the issuance thereof. The provisions of K.S.A. 10-112, and
amendments thereto, shall not apply to any bonds issued under this act.
(b) Revenue bonds issued under this act shall mature not later than 40
years after the date of the bonds; may be
subject to redemption prior to maturity, with or without premium, at
such times and upon such conditions as may be provided by the water
district board; and shall bear interest at a rate not to exceed the
maximum rate of interest prescribed by K.S.A. 10-1009, and amendments
thereto. The board may sell such bonds in such
manner and for such price
as it determines will best effect the purposes of this act. In no
case where revenue bonds are issued under this act shall the total
amount received therefrom be in excess of the actual cost
of the plan or program
which includes, in addition to all expenses incurred in the
acquiring of a water supply and distribution system, all expenses
incurred prior to and including the bond election, the no-fund warrants
outstanding under the provisions of K.S.A. 19-3505a, and amendments thereto,
and unpaid at the
time such revenue bonds are issued and all costs of operation and
maintenance of such water supply and distribution system estimated to be
necessary for a period of two years immediately following the
acquisition of such system and the amount necessary to pay the salaries
of the water district board due from the date the first member of the
first board is elected. Whenever any such water district board has
sufficient revenues to pay the operational and maintenance cost and the
board members' salaries, then such expenses shall be paid out of such
revenues and any surplus funds remaining from the sale of revenue bonds
shall be transferred to the revenue bond sinking fund of the water
district. No water district or county in which a portion of such water
district lies shall have any right or authority to levy taxes to pay any
of the principal of or interest on any such bonds or any judgment
against the issuing water district on account thereof, and the provisions
of K.S.A. 10-113, and amendments thereto, shall not apply to any bonds
issued hereunder. All
water district boards created by this act by appropriate
resolution shall make provisions for the payment of such bonds by fixing
rates, fees and charges, for the use of all services rendered by such
water district, which rates, fees and charges shall be sufficient to pay
the wages and salaries of all officers and employees and the costs of
operation, improvement and maintenance of the water supply and
distribution system; to provide an adequate depreciation fund and an
adequate sinking fund to retire such bonds and pay the interest thereon
when due; and to create reasonable reserves for such purposes. Such
fees, rates or charges shall be sufficient to allow for miscellaneous
and emergency or unforeseen expenses. The resolution of the water
district board authorizing the issuance of revenue bonds may establish
limitations upon the issuance of additional revenue bonds payable from
the revenues of the district's water supply and distribution system or
upon the rights of the holders of such additional bonds and may provide
that additional revenue bonds shall stand on a parity as to the revenues
of the water district and in all other respects with revenue bonds
previously issued on such conditions as specified by the board in
such resolution. Such resolution may include other agreements,
covenants or restrictions deemed necessary or advisable by the district
board to effect the efficient operation of the district's system and to
safeguard the interests of the holders of the revenue bonds and to
secure the payment of the bonds and the interest thereon.
(c) The water district board shall cause an audit to be made annually by
a licensed municipal public accountant or by a certified public
accountant of the operations of any water
supply and distribution system created hereunder for which revenue bonds
have been issued by any water district, and, if the audit
discloses that proper provision has not been made for all of the requirements of
this section, the water district board shall proceed promptly to cause
rates to be charged for the water supply and distribution services
rendered which will adequately provide for the requirements set out
herein. Within 30 days after the completion of such audit, a
copy of the audit shall be filed with the county clerks of the various
counties in which such water district is located, and such audit shall
be open to public inspection.
(d) The water district board, by a majority vote of the members thereof,
may contract for repairs, alterations, extensions or improvements of the
water supply and distribution system and issue revenue bonds to pay the
cost thereof without submitting to a vote of the electors of such water
district the proposal to contract for the making of such repairs,
alterations, extension and improvements and to issue revenue bonds to
pay the costs thereof. All contracts for any construction of all or
part of the water system, or for repairs, extensions, enlargements or
improvements to any such water supply and distribution system created
under this act, the cost of which exceeds $25,000 shall be awarded on
a public letting by the water district
board to the lowest responsible bidder, and in the manner provided by
K.S.A. 19-214, 19-215 and 19-216, and amendments thereto, except that
the required notice of
letting contracts shall be seven days if the cost does not exceed $100,000
and 30 days if the cost exceeds $100,000. Whenever the board finds that
an unforeseen occurrence or condition has created a public exigency
requiring immediate delivery of materials or performance of services, it
may declare an emergency and shorten or entirely dispense with the bidding
procedure.
(e) Where goods for use by the water district can be more advantageously
acquired by lease-purchase or financing leases than by full initial payment of
the purchase price or conventional leasing that is neither a sale nor creates a
security interest, the water district board, by a majority vote of the members
thereof, may approve the use of lease-purchases or financing leases or
authorize the general manager to make such determinations and approvals within
any limitations designed by the board.
History: L. 1951, ch. 240, § 16;
L. 1957, ch. 192, § 10;
L. 1970, ch. 64, § 66;
L. 1975, ch. 170, § 5;
L. 1977, ch. 54, § 31;
L. 1983, ch. 49, § 71;
L. 1984, ch. 106, § 1;
L. 1985, ch. 101, § 1;
L. 1987, ch. 103, § 2;
L. 1998, ch. 47, § 1; July 1.