CAPITAL OUTLAY FUND - Guidelines & Resolution for Tax Levy

Transcription

1 CAPITAL OUTLAY FUND - Guidelines & Reslutin fr Tax Levy The bard f educatin f any schl district may make an annual tax levy at a mill rate nt t exceed the statutrily prescribed mill rate upn the assessed taxable tangible prperty in such schl district fr the purpses specified in this act. N levy shall be made under this act until a reslutin is adpted by such bard f educatin in the fllwing frm: Rev. 5/2014 Reslutin t Levy Tax fr Capital Outlay Fund WHEREAS, the Bard f Educatin f Unified Schl District N., Cunty, State f Kansas, is authrized by K.S.A , t make an annual tax levy at a mill rate nt exceeding the statutrily-prescribed mill rate fr a perid f time as determined by the Bard f Educatin upn the taxable tangible prperty in the district fr the purpse specified in said law; and WHEREAS, the Bard f Educatin has determined t exercise the authrity vested in it by said law; NOW, THEREFORE, Be It Reslved that: RESOLUTION The abve-named schl bard shall be authrized t make an annual tax levy fr a perid nt t exceed years in an amunt nt t exceed mills upn the taxable tangible prperty in the schl district fr the purpse f acquisitin, cnstructin, recnstructin, repair, remdeling, additins t, furnishing, maintaining and equipping f schl district prperty and equipment necessary fr schl district purpses, including (1) Acquisitin f cmputer sftware; (2) acquisitin f perfrmance unifrms; (3) husing and barding pupils enrlled in an area vcatinal schl perated under the bard; (4) architectural expenses; (5) acquisitin f building sites; (6) undertaking and maintenance f asbests cntrl prjects; (7) acquisitin f schl buses; and (8) acquisitin f ther fixed assets, and fr the purpse f paying a prtin f the principal and interest n bnds issued by cities under the authrity f K.S.A , and amendments theret, fr the financing f redevelpment prjects upn prperty lcated within the schl district. The tax levy authrized by this reslutin may be made, unless a petitin in ppsitin t the same, signed by nt less than 10% f the qualified electrs f the schl district, is filed with the cunty electin fficer f the hme cunty f the schl district within 40 calendar days after the last publicatin f this reslutin. In the event a petitin is filed, the cunty electin fficer shall submit the questin f whether the tax levy shall be authrized t the electrs in the schl district at an electin called fr that purpse r at the next general electin, as is specified by the Bard f Educatin f the abve schl district. CERTIFICATE THIS IS TO CERTIFY that the abve Reslutin was duly adpted by the Bard f Educatin f Unified Schl District N., Cunty, Kansas, n the day f, 20. Page1 Clerk f the abve Bard f Educatin Kansas State Department f Educatin, Schl Finance - Rev. 5/2014

2 NOTE: This Reslutin can be published as it appears, except that the frm number shuld be deleted and the fllwing added at the very beginning f publicatin: First published in the, (name f paper) (date) Preparing the reslutin fr publicatin: The fllwing infrmatin is cntained in K.S.A : 1. The blank preceding the wrd 'mills' shall be filled with a specific number. 2. The bard has tw ptins t specify the perid f time the district will be authrized t levy the tax: a) a specified perid f years - the blank preceding the wrd 'years' shall be filled with a specific number, r b) n expiratin date - revise the statement t read schl bard shall be authrized t make a cntinuus and permanent annual tax levy in an amunt nt t exceed mills upn The reslutin shall be published nce a week (n the same day f the week) fr tw cnsecutive weeks in a newspaper having general circulatin in the schl district." NOTE: Fr reslutins adpted after July 1, 2005, the maximum mill levy limit is 8 mills. ADDITIONAL GUIDELINES 1. There is hereby established in every schl district f the state a fund which shall be called the "capital utlay fund." The capital utlay fund shall cnsist f all mneys depsited therein r transferred theret in accrdance with law. The prceeds f any tax levied under article 88 f chapter 72 f Kansas Statutes Anntated, except fr an amunt t pay a prtin f the principal and interest n bnds issued by cities under the authrity f K.S.A , and amendments theret, fr financing f redevelpment prjects upn prperty lcated within the schl district, shall be depsited in the capital utlay fund f the schl district making such levy. (K.S.A ) 2. All expenditures attributable t capital utlay shall be paid frm the capital utlay fund except any district may make capital utlay expenditures frm its general fund fr acquisitin f equipment and repair f schl buildings. Anther exceptin is allwed under law t purchase certain equipment frm specific funds. Example: Equipment fr apprved vcatinal educatin prgrams may be purchased frm the vcatinal educatin fund. 3. The fllwing expenditures may be paid frm the capital utlay fund: acquisitin, cnstructin, recnstructin, repair, remdeling, additins t furnishing, maintaining and equipping f buildings schl district prperty and equipment necessary fr schl district purpses, including (1) acquisitin f cmputer sftware; (2) acquisitin f perfrmance unifrms; (3) husing and barding pupils enrlled in an area vcatinal schl perated under the bard f educatin; (4) architectural expenses; incidental theret, the (5) acquisitin f building sites; the (6) undertaking and maintenance f asbests cntrl prjects; the (7) acquisitin f schl buses, and (8) acquisitin f ther equipment fixed assets. (K.S.A ) 4. The maximum mill rate limit has been set at eight (8) mills and is determined by the lcal bard f educatin based upn the successful passage f a reslutin and electin, if prtested. Page2 5. Listed belw is the table which shws ptential revenue that may/shall be depsited in the capital utlay fund. When filing reprts with the State f Kansas and the State Department f Educatin, all revenue shuld be identified in the fllwing categries: Kansas State Department f Educatin, Schl Finance - Rev. 5/2014

3 POTENTIAL SOURCE OF REVENUE LEGAL FUND THE REVENUE MAY BE DEPOSITED IN LOCAL Ad Valrem Prperty Tax... Capital Outlay Fund Interest n Idle Funds (Permissive)... Capital Outlay Fund Transfer frm General Fund (n limit)... Capital Outlay Fund Miscellaneus Revenue (Permissive)... Capital Outlay Fund * Reimbursements (see belw)... Capital Outlay Fund COUNTY Mtr Vehicle Prperty Tax (if a levy is made)... Capital Outlay Fund Mtr Vehicle 16/20M Truck Prperty Tax (if a levy is made)... Capital Outlay Fund Recreatinal Vehicle Tax (if a levy is made)... Capital Outlay Fund In lieu f Tax Payments frm Industrial Revenue Bnds (if a levy is made)... Capital Outlay Fund]] STATE Capital Outlay State Aid... Capital Outlay Fund FEDERAL Impact Aid - Cnstructin... Capital Outlay Fund * Reimbursements Includes thse revenues which are received fr materials and supplies purchased by students which were paid ut f this fund. This wuld als include reimbursement fr items such as insurance premium payments if the cst(s) were paid frm that fund. If mnies are received after the clse f a fiscal year fr an expense that was paid in a previus year, then the mney is cnsidered miscellaneus revenue under K.S.A and is placed in ne f the special funds authrized by that law. A letter frm the Office f the Attrney General dated July 31, 1969, examined items which culd be prperly charged against a capital utlay fund established prir t May 1, 1969, under K.S.A Supp , as amended by Sec. 12, Ch. 353 f the 1969 Sessin Laws. It calls t attentin the variance in the prvisins f Sectin 12, which is the particular subject f this pinin, and the first few prvisins f Chapter 353. Sectin 1 applies t capital utlay funds established by reslutin frm and after the effective date f Chapter 353. Sectin 12 deals with expenditures frm capital utlay funds already in existence at the time f the adptin f the act. The distinctin is imprtant, in that the statement f purpse with respect t sectin 1 is brader in scpe than the existing prvisins f K.S.A Supp as amended by Sectin 12. Page3 ELIGIBLE EXPENDITURES It is ur pinin that, subject t the cnditins nte in certain instances, all f the fllwing items culd prperly be charged against the capital utlay fund: Architectural fee (incidental t cnstructin) Athletic field expansin Bilers replacement Building (Qunset) fr athletic games, etc. Buses (schl buses, athletic buses) Fire extinguishers File cabinets Furniture Glbes Imprvement t sites Lighting athletic fields and schl grunds Mwers Musical instruments Parking lt Prjectrs and screens Remdeling kitchens & eating facilities Cleaning and painting (attributable t new cnstructin and remdeling) Science & labratry equipment Scre bard Televisin equipment Tractrs Typewriters Kansas State Department f Educatin, Schl Finance - Rev. 5/2014

4 NOTE: Districts adpting a Capital Outlay Reslutin after May 1, 2014, can als charge the fllwing items t the Capital Outlay fund: Cmputer sftware, perating system upgrades Filters (air, fuel) Repairs t equipment Repairs t vehicles Tires Salaries fr Maintenance f district prperty and equipment (includes custdians, bus mechanics, and thers) Unifrms Band, Pep Band, Athletic, etc. Upkeep f grunds, streets Other eligible expenditures (with exceptins): Athletic equipment: Yes - Substantial items f gymnasium equipment, such as parallel bars, hrses, tumbling mats, etc. N - Supplies such as balls, bats, shulder pads, etc. Cmputer equipment: Yes hardware, sftware, perating system upgrades Lease f schl facilities Library bks: Yes - Bks purchased in rder t establish a schl library N - Bks purchased fr replacement purpses, r as part f a cntinuing supply resupply prgram Mathematics labratry: Yes - Machines and majr equipment N - Miscellaneus supplies such as paper, pencils, chalk, etc. INELIGIBLE EXPENDITURES The fllwing items wuld nt be prper expenditures frm a capital utlay fund: Page4 Athletic supplies such as balls, bats, shulder pads, etc. Cleaning supplies Cntracted services cnsultants DVDs Instructinal charts Insurance Fuel Maps Music Publicatins Supplies fr prfessinal services Special assessment fr paving and sewer Textbks Tiletries Vides Belw are criteria fr defining supplies and equipment frm the Kansas Accunting Handbk: Kansas State Department f Educatin, Schl Finance - Rev. 5/2014

5 Criteria fr Supply Items: A supply item is any article r material which meets any ne r mre f the fllwing cnditins: 1) It is cnsumed. 2) It lses its riginal shape r appearance with use. 3) It is expendable, that is, if the article is damaged r sme f its parts are lst r wrn ut, it is usually mre feasible t replace it with an entirely new unit rather than repair it. 4) It is an inexpensive item, having characteristics f equipment, whse small unit cst makes it inadvisable t capitalize the item. 5) It lses its identity thrugh incrpratin int a different r mre cmplex unit r substance. Criteria fr Equipment Needs: 1) It retains its riginal shape and appearance with use. 2) It is nn-expendable, that is, if the article is damaged r sme f its parts are lst r wrn ut, it is usually mre feasible t repair it rather than replace it with an entirely new unit. 3) It represents an investment f mney which makes it feasible and advisable t capitalize the item. 4) It des nt lse its identity thrugh incrpratin int a different r mre cmplex unit r substance. Link t Kansas Accunting Handbk: If yu have questins: Craig Neuenswander Schl Finance Directr Kansas State Dept. f Educatin 120 SE 10th Avenue Tpeka, KS craign@ksde.rg # # # Bw:capital utlay reslut _guide Page5 Kansas State Department f Educatin, Schl Finance - Rev. 5/2014