- Last Updated: 26 December 2018 26 December 2018
|Policies and Regulations||NEPN Code: FD
Facilities Planning and Development
- Method of Financing
- The purchase of school sites and buildings shall be financed by issuance of general obligation bonds, tax levy for the Capital Outlay Fund, and such other funds as may be legally available for these purposes.
- Bonded Indebtedness
- Legal limitations regarding the amount of bonded indebtedness shall be in accordance with State law. Cost determination for new construction and renovation projects, bond limitations, and bond sale shall be responsibilities of the Superintendent or designees, and are subject to review and approval by the School Board.
- Accumulation of Funds
- The Board may authorize an annual tax, not to exceed the amount prescribed by State law, for the Capital Outlay Fund of the District. Money received from the sale of bonds shall be placed in a capital project fund for which the bonds were sold. Money can be expended only for purposes described by State law.
- Short-Term Borrowing
- The Board shall have the authority to borrow money by promissory note, subject to limitations and regulation of State statutes.
- Types of Bonds
- The Sioux Falls School District is authorized to issue negotiable bonds only for purposes, and according to procedures, prescribed by State law.
- Post-Issuance Compliance for Tax-Exempt and Tax Advantaged Obligations
- It is the policy of the District to set forth procedures designed to monitor post-issuance compliance of tax-exempt or tax advantaged obligations (“Obligations”) issued by the District with applicable provisions of the Internal Revenue Code of 1986, as amended (the “Code”), and regulations promulgated thereunder (“Treasury Regulations”). This policy’s accompanying regulation documents practices and describes various procedures and systems designed to identify on a timely basis facts relevant to demonstrating compliance with the requirements that must be satisfied subsequent to the issuance of Obligations in order that the interest on such Obligations continue to be eligible to be excluded from gross income for federal income tax purposes or that the Obligations continue to receive tax advantaged treatment. The federal tax law requirements applicable to each particular issue of Obligations will be detailed in the arbitrage or tax certificate prepared by bond counsel and signed by officials of the Issuer and the post closing compliance checklist provided by bond counsel with respect to that issue. Additionally, this policy/regulation establishes a permanent, ongoing structure of practices and procedures that will facilitate compliance with the requirements for individual borrowings. Compliance with applicable provisions of the Code and Treasury Regulations is an on-going process, necessary during the entire term of the Obligations, and is an integral component of the District’s debt management. Accordingly, the analysis of those facts and implementation of this policy will require on-going monitoring and consultation with bond counsel and the Issuer’s accountants.
At its annual meeting, the Board shall review and approve a post-issuance compliance questionnaire designed to ensure compliance with relevant District policies as well as relevant State and Federal statutes, rules, and regulations.
- Legal References: South Dakota Constitution, Article XIII, Section Four
13-16-1 Sources of school district funds
13-16-2 Funds to comport with generally accepted accounting principles
13-16-6 Definition and use of capital outlay fund-Levy required
13-16-7 Additional tax levy for certain funds or obligations-Pledge to payment of installments or certificates-Remedies for enforcement
13-16-8 Bond and certificate proceeds placed in capital outlay fund
13-16-9 Expenditure of money from capital outlay fund
Ch. 13-19 School District Bonds and Notes
US Code: Title 26
26 Code of Federal Regulations
|Policy||Board Action||(formerly 7310, 7311, 7313, and 7311.21)|