La. Admin. Code tit. 71, § III-125 - School Boards-Bonds

Current through Register Vol. 48, No. 3, March 20, 2022

A. Article VI, Section 33, R.S. 39:551 provides for incurring debt and issuing (G.O.) bonds by political subdivisions of the state. R.S. 39:552 states parish purposes for which debt may be incurred and bonds issued. Bonds are limited to 40 years duration (R.S. 39:562). School board bond issues secured by ad valorem taxes are limited to 25 percent of assessed valuation (R.S. 39:562). The maximum interest rate on ad valorem bonds is 8 percent (R.S. 39:1424).
1. Ad Valorem Tax Secured Bonds (General Obligation or G.O. Bonds):
a. a statement of the assessed valuation according to the last assessment roll of record;
b. a statement of the outstanding ad valorem tax bonded indebtedness and the purpose for which debt was incurred;
c. the resolution of the governing body applying for authority to hold an election and setting forth1 the amount of issue, duration, including schedule of bond maturities, interest rate, purpose, security, proposition, request to the commission to authorize issuance, sale and delivery of bonds if election is carried, and the election date;
d. a description of the project, including an estimate of the cost of the project and of the cost of issuing bonds.
2. Sales Tax Secured Bonds [Article VI, Section 29(A), R.S. 33:2724 and R.S. 39:698.1-698.13]. The governing authority of a school board may levy a tax upon the sale at retail, the use, the lease or rental, the consumption, and the storage for use or consumption, of tangible personal property and on sales of services as defined by law, if approved by a majority of the electors. The rate cannot exceed 3 percent within any school board.2 Sales tax may be funded into bonds which are limited to 75 percent of the avails of the tax (R.S. 33:2724 and R.S. 39:698.4). The following information is required:
a. a resolution of the school board to hold a special election to fund into bonds (may be submitted at same election that imposes sales tax or at a separate election held for that purpose) and setting forth1 the amount to be funded;
b. duration (including schedule of bond maturities);
c. interest rate;
d. purpose;
e. security (sales tax revenue);
f. proposition; and
g. the election date.

Notes

La. Admin. Code tit. 71, § III-125
Promulgated by the Department of the Treasury, Bond Commission, LR 2:348 (November 1976), amended LR 4:401 (October 1978).
AUTHORITY NOTE: Promulgated in accordance with R.S. 49:950 et seq.

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