15-1102. Disposition of proceeds from sale or lease of school property; school plant monies; payment of bonded indebtedness; definition
A. The governing board, or the superintendent or chief administrative officer with the approval of the governing board, may expend the proceeds from the sale or lease of school property for the payment of any outstanding bonded indebtedness of the school district or for the reduction of school district taxes.
B. A common school district or high school district which has an outstanding bonded indebtedness of seven per cent of the current year's assessed valuation or less or a unified school district which has an outstanding bonded indebtedness of fourteen per cent of the current year's assessed valuation or less may expend the proceeds from the sale or lease of school property for maintenance and operation or capital outlay, subject to the following limitations:
1. The total sum of the proceeds from the sale of school property before July 1, 1998 or the lease of school property for more than one year expended for maintenance and operation shall not exceed fifteen per cent of the revenue control limit as provided in section 15-947, subsection A in any year of which ten per cent may be used without voter approval and an additional five per cent may be used if the additional amount is approved by a majority of the qualified electors voting in an election called for such purposes. The election shall be conducted and notice and ballots shall be prepared as provided in section 15-481. Proceeds from the sale of school property from and after June 30, 1998 shall not be expended for maintenance and operation.
2. In any fiscal year in which a district utilizes budget increases as authorized in section 15-481, subsection E or F or section 15-482 or utilizes the proceeds from the sale of school property before July 1, 1998 or the lease of school property for more than one year for maintenance and operation or any combination of these provisions, the total amount of these increases which may be expended is equal to fifteen per cent of the revenue control limit for that year as provided in section 15-947, subsection A, provided that the following maximum amount is attributable to the use of any one provision:
(a) Fifteen per cent of the revenue control limit when using the proceeds from the sale before July 1, 1998 or lease of school property for maintenance and operation as provided in this section.
(b) Fifteen per cent of the revenue control limit when using a budget increase as provided in section 15-481, subsection E or F, or both.
(c) Five per cent of the revenue control limit when using a budget increase as provided in section 15-482.
C. A common school district or high school district which has an outstanding bonded indebtedness of greater than seven per cent of the current year's assessed valuation or a unified school district which has an outstanding bonded indebtedness of greater than fourteen per cent of the current year's assessed valuation may expend the proceeds from the lease or sale of school property as follows:
1. For maintenance and operation, the expenditure may not exceed the lesser of the limit in subsection B, paragraph 1 or 2 of this section or the amount of the proceeds from the lease of school property multiplied by .25.
2. For capital outlay, the expenditure of the proceeds:
(a) From the sale of school property may not exceed the amount of the proceeds multiplied by .62.
(b) From the lease of school property is not limited.
D. The governing board, or the superintendent or chief administrative officer with the approval of the governing board, shall promptly deposit monies received for and derived from the sale or lease of school property with the county treasurer who shall establish three school plant funds, one fund for monies received from the sale before July 1, 1998 or lease of school property for more than one year, one fund for monies received from the sale of school property from and after June 30, 1998 and one fund for monies received from the lease of school property for one year or less. The county treasurer shall credit the deposits to the respective school plant fund of the respective school district. Monies placed to the credit of the school plant funds may be expended as provided in this section. The school plant funds are continuing funds not subject to reversion.
E. Notwithstanding subsection C of this section, the governing board, or the superintendent or chief administrative officer with the approval of the governing board, may expend the proceeds from the sale before July 1, 1998 or lease of school property for the additional maintenance and operations expenses incurred as the result of operating on a year-round school year operation basis pursuant to section 15-855. The amount that the governing board, superintendent or chief administrative officer may expend for a year-round school year operation, as provided in this subsection, is limited to the actual maintenance and operations costs incurred as the result of the year-round school year operation as documented in the school district's budget as provided in section 15-855. A governing board, superintendent or chief administrative officer that utilizes this subsection is subject to all other limitations prescribed in this section regarding the expenditure of proceeds from the sale before July 1, 1998 or lease of school property.
F. Notwithstanding subsections B and D of this section, if the school district electors approve the sale of school property and the use of the proceeds for the purchase of school sites or the construction, improvement or furnishing of school facilities, the proceeds from the sale shall be put in a separate fund for use for the approved purpose as prescribed by the uniform system of financial records. This fund is a continuing fund not subject to reversion, except that after ten years any unexpended monies shall be put in the school plant fund for use as prescribed in this section.
G. Proceeds from sales by condemnation or sales under threat of condemnation may be deposited with the county treasurer for deposit in the condemnation fund or the school plant fund of the school district. The condemnation fund is a continuing fund not subject to reversion, except that after ten years any unspent monies shall be placed in the school plant fund to be used as prescribed in this section. The governing board, or the superintendent or chief administrative officer with the approval of the governing board, may apply the proceeds in the condemnation fund to:
1. The payment of any outstanding bonded indebtedness of the school district which is payable from the levy of taxes upon property within the school district.
2. Construct, acquire, improve, repair or furnish school facilities or sites after notice and a hearing.
H. Proceeds from a right-of-way settlement shall be deposited with the county treasurer for deposit in the condemnation fund of the school district. The governing board, or the superintendent or chief administrative officer with the approval of the governing board, shall apply such proceeds in the condemnation fund to construct, acquire, improve, repair or furnish school facilities or sites after notice and a hearing.
I. For the purposes of this section, " capital outlay" means unrestricted capital outlay as prescribed in section 15-903, subsection C.
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