80-1602. Revenue bonds; purposes for which bonds may be issued; extension of system; condition, sale or pledge of bonds to federal government.
Such township board may issue revenue bonds to finance the cost of constructing, reconstructing, repairing, or improving such water system including such water treatment plant and such bonds shall be made as a specific lien upon such water system so constructed, reconstructed, repaired or improved and the revenues derived therefrom and shall, in no case, be a debt guaranteed or secured by any other property within the township and no special election shall be required to authorize the issuance of such revenue bonds and such revenue bonds shall not be taken into account or in any wise be a limitation upon the power of said township board to issue bonds for any other purpose. The township board of any such township which shall have issued and sold revenue bonds under the provisions of this act, is hereby empowered and authorized to issue additional revenue bonds in conformity with this act for the purpose aforesaid, and to pledge for the payment of such additional revenue bonds, the revenues of such water system, together with the additional revenues of said water system as so constructed, reconstructed, repaired, or improved except that no additional revenue bonds shall be issued and sold if there is an issue of revenue bonds outstanding for the payment of which the revenues of the water system have been pledged unless the township board provides for the refunding of such outstanding revenue bonds in the manner authorized by and subject to the provisions of K.S.A. 10-116a, and amendments thereto.
Revenue bonds issued to finance the cost of extending such water system or to construct a water treatment plant shall constitute a specific and prior lien upon such extension to such system and the revenues derived therefrom, but shall, in no case, be a debt guaranteed or secured by any other property within the township or by the revenues of the water system to which such extension is made, and no special election shall be required to authorize the issuance of such additional revenue bonds and such additional revenue bonds shall not be taken into account or in any wise be a limitation upon the power of said township board to issue bonds for any other purpose.
The township board shall make such extensions to such water system and issue revenue bonds to pay the cost thereof only when there shall be presented to such board a sufficient number of agreements or subscriptions to purchase water at a specified schedule of rates to be set out in such agreements or subscriptions for a period of not less than three years, duly signed by the owners of property along the proposed extension of said system which will permit the liquidation of the cost of such extension from revenue derived from the sale of water along said extension, and said board is authorized to fix and collect from users of water on said extension such schedule of rates as may be necessary to liquidate said additional revenue bonds so issued to pay the cost of construction thereof without regard to the schedule of rates charged consumers on the system to which such extension is made. The township board may sell said additional revenue bonds as provided by law, or may, if deemed advisable, pledge or sell any of such additional revenue bonds, issued for the construction, reconstruction, repair, improvement or extension of said water system including such water treatment plant to the federal government as provided in the said national industrial recovery act, or any other federal act, for the purpose of procuring funds for such construction.
History: L. 1933, ch. 125, § 2 (Special Session); L. 1937, ch. 379, § 1; L. 1939, ch. 342, § 2; L. 1965, ch. 550, § 2; L. 1977, ch. 58, § 16; May 18.