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10-1116. Limits of indebtedness may be exceeded, when; creating indebtedness in violation of act unlawful. (a) The limits of indebtedness prescribed under the provisions of article 11 of chapter 10 of the Kansas Statutes Annotated may be exceeded when: (1) Payment has been authorized by a vote of the electors of the municipality; (2) provision has been made for payment by the issuance of bonds or temporary notes as provided by law; (3) provision has been made for payment by the issuance of no-fund warrants authorized by law and in the manner, and limited in amount as prescribed by law; (4) provision has been made for a revolving fund for the operation of any municipal airport financed and sustained partially or wholly by fees, rentals, proceeds from the sale of merchandise or charges for rendering services, received from the users of such airport; (5) provision has been made for payment pursuant to a service agreement entered into pursuant to K.S.A. 12-5503, and amendments thereto; or (6) the indebtedness is created by a municipality in establishing a post-employment benefits trust fund in accordance with K.S.A. 12-16,102, and amendments thereto.

(b) Notwithstanding any other limits of indebtedness prescribed under the provisions of article 11 of chapter 10 of the Kansas Statutes Annotated, the following funds shall have as a limit of indebtedness an amount equal to 100% of the accrued revenue of the current fiscal year plus any balances carried forward, cash reserves, intergovernmental grants, and sums advanced to qualify for intergovernmental grants: (1) Special recreation facilities reserve funds set up by any board of park commissioners or any municipality for a revolving fund for the repair, replacement or addition to recreational facilities; (2) enterprise funds set up in any municipality to account for the financing of self-supporting activities of governmental units which render services on a user charge basis to the general public, such as municipal utilities engaged in the provision of water, electricity and natural gas and sanitary sewer systems which are financed by user charges; or (3) intragovernmental service funds or working capital funds established in any municipality to finance and account for services and commodities furnished by a designated agency of a governmental unit to other departments of the same governmental unit such as funds established for central garages and motor pools, central printing and duplicating services and central purchasing and stores departments.

The board of education of any school district, the board of regents of any municipal university or the board of trustees of any community college may enter into contracts for teachers and other necessary employees and for continuing operating expenses in excess of the amount of funds actually on hand for that purpose. The limit of indebtedness provided by this section shall never exceed 100% of the amount actually expended for school purposes for the last preceding fiscal year during which school was conducted.

(c) It shall be unlawful for any member of the governing body of any municipality, as defined in K.S.A. 10-1101, and amendments thereto, to knowingly vote for or in any manner aid or promote the entering into of any contract or the creation of any other indebtedness in violation of the provisions of this section.

History: L. 1933, ch. 319, § 16; L. 1941, ch. 98, § 1; L. 1945, ch. 92, § 1; L. 1959, ch. 62, § 2; L. 1963, ch. 68, § 1; L. 1974, ch. 47, § 1; L. 1975, ch. 49, § 1; L. 1990, ch. 64, § 12; L. 2007, ch. 82, § 2; April 12.

Cross References to Related Sections:

Issuance of no-fund warrants, see 79-2938 through 79-2942.

Budget law exemption, see 79-2925.

Law Review and Bar Journal References:

Negotiated agreements would be invalid if they violated the cash-basis school financing laws, Larry L. Deemer and Robert J. Fowks, 7 W.L.J. 291, 297 (1968).

Attorney General's Opinions:

Public airport authority; cash-basis law; power to borrow money. 82-158.

Cash-basis for municipalities; public wholesale water supply district act. 87-83.

Airports; revolving funds; cash-basis law; excess indebtedness. 88-1.

Creating indebtedness in excess of funds unlawful; exceptions. 89-28

Cash-basis law; exemptions; indebtedness approved by voters for financing integration of city hospital and private hospital. 94-101.

Board of county commissioners; contracts binding future boards; cash-basis law; exceptions. 98-13.

County policy for paid time-off does not violate cash-basis law if obligation is contingent on future events. 2007-25.


1. Section held valid, as it has uniform effect. State, ex rel., v. Board of Education, 137 Kan. 451, 455, 21 P.2d 295.

2. "Revenue certificates" for city light plant held not exempted hereunder. Kansas Power Co. v. Fairbanks, Morse & Co., 142 Kan. 109, 116, 45 P.2d 872.

3. Teacher's contract held not within exemption and void. Patterson v. Montgomery County Comm'rs, 145 Kan. 559, 564, 66 P.2d 400.

4. Petitions for county building held equivalent to an "election"; act inapplicable to K.S.A. 19-1503. State, ex rel., v. Republic County Comm'rs, 148 Kan. 376, 378, 381, 382, 82 P.2d 84.

5. Purpose of act discussed; applies to statutory claims. Shouse v. Cherokee County Comm'rs, 151 Kan. 458, 461, 462, 99 P.2d 779. Affirmed: 152 Kan. 41, 102 P.2d 1043.

6. Township cannot issue bonds without express or clearly implied statutory authority. Township Board of Ash Creek v. Robb, 166 Kan. 138, 139, 140, 199 P.2d 521.

7. Cash-basis law did not repeal or affect drainage district law or assessments. McCall v. Goode, 168 Kan. 361, 362, 363, 212 P.2d 209.

8. Where city over issues notes in violation of cash-basis law, provisions of K.S.A. 84-8-202 fixes responsibility. Farmers State Bank & Trust Co. of Hays v. City of Yates Center, 229 Kan. 330, 338, 624 P.2d 971.

9. Bonding provisions of K.S.A. 12-1770 et seq. for auto race track do not violate cash basis law. State ex rel. Tomasic v. Unified Gov't of Wyandotte County/Kansas City, 265 Kan. 779, 804, 962 P.2d 543 (1998).

10. Township may not use cash-basis law to refuse to reimburse county for performing repairs to township road. Board of Marshall County Comm'rs v. Lincoln Township, 266 Kan. 355, 362, 970 P.2d 54 (1998).

11. Kansas superintendent plausibly alleged a protected property interest based on the termination of his contract; a possibly illegal benefits clause did not strip the school board of all power to enter into a contract with the superintendent; the post-termination benefits clause did not violate the Kansas cash basis law. Gilhaus v. Gardner Edgerton Unified Sch. Dist. No. 231, 138 F. Supp. 3d 1228, 1238 (D. Kan. 2015).

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