A CHARTER ORDINANCE EXEMPTING THE CITY OF OTTAWA, KANSAS FROM SECTION 12-825d and 12-825g OF KANSAS STATUTES ANNOTATED, AND PROVIDING SUBSTITUTE AND ADDITIONAL PROVISIONS OF THE SAME SUBJECT RELATING TO USE, DISTRIBUTION AND INVESTMENT OF REVENUES; SPECIAL FUNDS; AND USE OF FUNDS FOR COMMUNITY AND UTILITY PROMOTIONS.
BE IT ORDAINED by the Governing Body of the City of Ottawa, Franklin County, Kansas:
Section 1. The City of Ottawa, Franklin County, Kansas, has the power vested in it by Article 12, Section 5 of the Constitution of the State of Kansas and hereby elects to make inapplicable to it and exempts itself from Section 12-825d and Section 12-825g of Kansas Statutes Annotated which apply to said City, but not uniformly to all cities and provides substitute and additional provisions on the same subject as hereinafter provided.
Section 2. The City of Ottawa, Kansas, being a city of the second class, owning and operating a water works and a power and light facility, the revenue derived from the sale of electricity and water shall not be paid out or disbursed except for the purpose of operating, renewing or extending the plant or distribution system from which such revenue was derived, the payment of interest on outstanding bonds issued for the construction, extension or purchase thereof, and the payment of the salaries of employees; and at any time that there may be a surplus of such funds, it shall if needed to redeem bonds, be quarterly placed in a sinking f und which shall only be used for the purpose of redeeming bonds that may have been issued for acquiring, renewing or extending said plant or distribution system or making renewals or extensions thereto; provided, that when any surplus of either the operating fund or sinking fund is not needed for any of the above stated purposes, said surpluses:
(a) may be transferred and merged into the City General Revenue Fund or any other fund or funds of such City;
(b) a part of such surpluses may annually be transferred to a special fund which shall be known as “the community and utility promotion fund.” That the total amount transferred to such fund in any one calendar year shall not exceed 1% of the gross income derived from the sale of water and electricity during the preceding calendar year by such City and at no time shall there be more than $50,000.00 in said fund, and the moneys in said fund may be expended for the purposes authorized by Section 3 of this charter ordinance; or
(c) such surpluses in whole or in part may be set aside in a depreciation reserve f und of the utility which may be used as hereinbefore provided and which may be invested in United States Government bonds and in any municipal bonds of the State of Kansas; provided, that such surplus funds so set aside shall not be invested under this ordinance in the bonds of any county, township, city or school district where the bonded indebtedness shall exceed 15% of its total assessed valuation as shown by the last assessment preceding such investment.
The Governing Body of the City of Ottawa, Kansas having transfer red surpluses to the community and utility promotion fund as authorized by Section 2 of this charter ordinance may expend the moneys in said fund for the purpose of promotion of or co-operating in the promotion of industrial development within or without the corporate limits of such City and also for the purpose of promoting the use of water and power furnished from the water works and power plant of such city and also for the purpose of advertising and promotion of the sale of electricity and water.