HB0687 Kreider, Jim

P R E F I L E D

HB 687 -- Lease Purchase for School Districts

Under this bill a school board by majority vote may submit to the voters of the district a proposition of whether the district will be authorized to enter into a lease purchase agreement for capital improvements. If the measure is approved, the board will submit a resolution to the county clerk who will assess the amount authorized against taxable property in the district beginning with the next September 20th. The clerk will keep a separate accounting of this assessment. These funds may not be transferred to any other fund of the district nor will any increased tax rate resulting from the proposition be used in determining any portion of the equalized operating levy or for calculating state aid.

The district will reduce the amount of any levy that results in excess revenues over the revenues needed for the payment of the obligations of the lease purchase agreement. If the reduced levy is not adequate to meet the obligations, the district will raise the levy but not above that approved by the voters. The bill limits the amount of annual installment payments during the term of the lease purchase agreement.