A Charter Ordinance exempting the City of Garnett, Kansas from the provisions of Section 12-825d, Kansas Statutes Annotated, relating to the use, distribution and investment of revenue derived from the sale and consumption of water, fuel gas, power of light from the city owned utilities and providing substitute and additional provisions on the same subject.

Be it ordained by the Governing Body of the City of Garnett, Kansas:

Section 1. The City of Garnett, Kansas under the authority of Article 12, Section 5 of the Constitution of the State of Kansas, hereby exempts itself from and makes applicable the provisions of Section 12-825d, Kansas Statues annotated, which apply to the said city, but the provisions of which do not apply uniformly to all cities and to provide substitute and additional provisions on the same subject as hereinafter provided.

Section 2. The revenue derived by the city from the sale and consumption of water, fuel, gas and power  or light 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 the employees; and at any time that there may be a surplus of such fund, it shall, if needed to redeem bonds, be placed into a sinking fund, 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 stated purposes, said surpluses in whole or in part:

(a)   Ten percent (10%) of the gross annual revenue of each utility may be transferred and merged into the city general revenue fund or any other fund or funds of such city.

(b)   An additional one percent (1%) of the gross annual revenue may be expended for the purpose of promotion industrial development within or without the corporate limits of the city including encouraging and assisting the location of new business and industry and expansion of existing development for the purpose of promoting the sale, use and consumption of water, fuel, gas, power or light furnished from the waterworks, fuel, gas, power or lighting plant or distribution system of the city the economic and general welfare and prosperity of the City of Garnett, provided, that no such expenditure shall be made for purposes of industrial promotion until a finding has been made by the Governing Body of the City by resolution duly adopted that the purpose for which the expenditure is made is in the public interest and will promote industrial and utility development to the advantage of the city. Provided further, that when at any time monies are realized from the lease, lease purchase or sale of any building or building facility or any other project, the cost or any portion of which was paid from a utility fund for the purposes of promotion industrial development as above provided, such monies or any portion which such expenditure was made:

(c)   An additional one percent (1%) of the gross annual revenue may be expended for the purpose of advertising and promotion of the sale of electricity, gas and water.

(05-1968)