Kansas Attorney General Opinion 1992-121

ROBERT T. STEPHAN
ATTORNEY GENERAL
September 17, 1992
ATTORNEY GENERAL OPINION NO. 92- 121
Steven K. Hirsch
Decatur County Attorney
P.O. Box 296
Oberlin, Kansas 67749
Re: Agriculture -- Conservation Districts -- Power to
Enter into a Lease-Purchase Agreement
Bonds and Warrants -- Cash-Basis Law --
Definitions; Municipality and Governing Body
Synopsis: The Decatur county soil conservation district
does not have the authority to enter into a
lease-purchase agreement that exceeds the current
budget year. Cited herein: K.S.A. 2-1903;
2-1907b; 2-1908; 10-1101; 10-1116b.
Dear Mr. Hirsch:
As Decatur county attorney, you request our opinion as to
whether or not the soil conservation district is an entity
which can enter into a lease-purchase agreement.
Municipalities are subject to the cash-basis law as set forth
at K.S.A. 10-1101 et seq. There is an exception to the
cash-basis law for lease-purchase agreements if the
lease-purchase agreement "specifically state[s] 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." K.S.A. 10-1116b(3).
Since the cash-basis law applies to municipalities we must see
if the soil conservation district is a municipality.
"'Municipality' shall be construed and
held to mean county, township, city,
municipal university, school district,
community junior college, drainage
district, and any other similar political
subdivision or taxing district of the
state." K.S.A. 10-1101.
Next, we look to the definition of a soil district to see if
it fits within the definition of a municipality.
"'District' or 'conservation district'
means a governmental subdivision of this
state, and a public body corporate and
politic, organized in accordance with the
provisions of this act, for the purposes,
with the power, and subject to the
restrictions hereinafter set forth."
K.S.A. 2-1903(a).
Attorney General Opinion Nos. 76-320 and 77-352 have held that
the definition of a municipality means a "political
subdivision which has the power to levy taxes." Since the
county has the authority to decide the amount of the levy and
to actually levy the taxes (K.S.A. 2-1907b) the soil
conservation district is not a taxing subdivision or a
municipality within the meaning of the cash-basis law as set
out in Attorney General Opinion No. 76-320.
Furthermore, the definition of "governing body" in the
cash-basis section requires the board to have "authority under
the laws of this state to create indebtedness against the
municipality." K.S.A. 10-1101(b). However, the soil
conservation district empowering statute specifically states:
"The supervisors of any district shall not
contract debts or obligations in the name
of the district beyond the current
appropriation made available to the
district by the committee or federal

grants or other financial sources."
K.S.A. 2-1908(1).
Therefore, the soil conservation district cannot enter into a
lease-purchase agreement under the cash-basis law because they
do not fit within the definition of municipality or governing
body within that law and therefore cannot take advantage of
the lease-purchase exception. This is compounded by the fact
that the soil conservation district statutes specifically
prohibit any debt or obligation beyond the current budget
year. K.S.A. 2-1908(1). Based on this analysis it is the
opinion of this office that the Decatur county soil
conservation district is not authorized to enter into a
lease-purchase agreement that exceeds the current budget year.
Very truly yours,
ROBERT T. STEPHAN
ATTORNEY GENERAL OF KANSAS
Mary Jane Stattelman
Assistant Attorney General
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