CHAPTER 25 SENATE BILL No. 4 (Amended by Chapter 139) An  Act concerning the cash-basis law; relating to exemptions therefrom; amending K.S.A.
10-1102 and 10-1116a and repealing the existing sections. Be it enacted by the Legislature of the State of Kansas:

      Section  1. K.S.A. 10-1102 is hereby amended to read as follows: 10-
1102. (a) K.S.A. 10-1101 through 10-1122, and amendments thereto, shall
be known and may be cited as the cash-basis law.

      (b) All municipalities are required to pay or refinance their valid in-
debtedness as in this act provided in the cash-basis law, in the manner
and at the times herein set forth, and to contract no indebtedness after
May 1, 1933, except as herein provided by the cash-basis law. It is hereby
declared that the purpose of this act is to provide for the funding and
payment of all legal debts and obligations except present bonded indebt-
edness of all municipalities and for the future conduct of the financial
affairs of such municipality upon a cash basis.

      Sec.  2. K.S.A. 10-1116a is hereby amended to read as follows: 10-
1116a. The provisions of this act limitations on expenditures imposed un-
der the cash-basis law shall not apply to:

      (a) Expenditures in excess of current revenues made for municipally
owned and operated utilities out of the fund of such utilities caused by,
or resulting from the meeting of, extraordinary emergencies including
drought emergencies. In such cases expenditures in excess of current
revenues may be made by declaring an extraordinary emergency by res-
olution adopted by the governing body and such resolution shall be pub-
lished at least once in a newspaper of general circulation in such city.
Thereupon, such governing body may issue interest bearing no-fund war-
rants on such utility fund in an amount, including outstanding previously
issued no-fund warrants, not to exceed 25% of the revenues from sales
of service of such utility for the preceding year. Such warrants shall be
redeemed within three years from date of issuance and shall bear interest
at a rate of not to exceed the maximum rate of interest prescribed by
K.S.A. 10-1009, and amendments thereto. Upon the declaration of a
drought emergency, the governing body may issue such warrants for wa-
ter system improvement purposes in an amount not to exceed 50% of the
revenue received from the sale of water for the preceding year. Such
warrants shall be redeemed within five years from the date of issuance
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.

      (b) Expenditures by school districts which are in excess of current
revenues if the deficit or shortage in revenues is caused by, or a result of,
the late distribution of state aid under K.S.A. 72-6417, and amendments
thereto.

      The provisions of this subsection shall apply to expenditures made in
school year 2001-2002, school year 2002-2003, school year 2003-2004,
school year 2004-2005, school year 2005-2006 and school year 2006-2007.

 Sec.  3. K.S.A. 10-1102 and 10-1116a are hereby repealed.
 Sec.  4. This act shall take effect and be in force from and after its
publication in the Kansas register.

Approved April 1, 2003.
 Published in the Kansas Register April 10, 2003.
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