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10-1116b. Lease, lease-purchase or installment-purchase agreements; agreements for electric interconnection or transmission facilities; when allowed under cash-basis law. Nothing in the provisions of K.S.A. 10-1101 et seq., and amendments thereto, shall prohibit a municipality from entering into (1) an agreement to pay for electric interconnection or transmission facilities or services, (2) a lease agreement, without an option to buy, or (3) a lease-purchase agreement, if any of such agreements specifically state that the municipality is obligated only to pay periodic payments or monthly installments under the agreement as may lawfully be made from (a) funds budgeted and appropriated for that purpose during such municipality's current budget year or (b) funds made available from any lawfully operated revenue producing source. For the purpose of this act, a lease-purchase agreement shall include a lease with an option to buy or an installment-purchase agreement.

History: L. 1980, ch. 51, § 1; L. 1990, ch. 74, § 2; May 24.

Attorney General's Opinions:

Purchase of buildings by county mental health centers. 81-49.

Acquisition of existing medical clinic by hospital district under multi-year purchase contract. 82-6.

Lease-purchase and installment-purchase agreements under the cash-basis law. 82-46. 82-79.

Cash-basis law; lease or installment purchase agreements. 84-117.

Lease or installment purchase agreements; when allowed. 85-167.

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

City may sublease public park land for construction and maintenance of a public golf course. 87-88.

Lease or installment-purchase agreements; contracts for services. 89-16.

Lease of hospital district property; lease purchase agreement. 89-135.

Conservation districts; powers; lease-purchase agreements. 92-121.

Fire district governing body; powers; cash-basis law. 93-95.

Conservation district is subject to cash-basis law; lease purchase agreements, authority. 96-2.

Board of education required to publish resolution to enter into lease-purchase agreement when term exceeds current fiscal year and yearly payments exceed $100,000. 2005-12.

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


1. Whether lease-purchase agreement executed by municipality which violates cash-basis law (K.S.A. 10-1101 et seq.) is void examined. U.S.D. No. 207 v. Northland Nat'l Bank, 20 Kan. App. 2d 321, 323, 887 P.2d 1138 (1994).

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