School buildings-local enhancement maintenance levy.

WORKING DRAFT
2005
STATE OF WYOMING
05LSO-0088

HOUSE BILL
NO.
HB0010

School buildings-local enhancement maintenance levy.

Sponsored by:
Select Committee on School Facilities

A BILL

for

AN ACT relating to school buildings; requiring school districts to fund maintenance of enhancements to school buildings; authorizing optional board and voter approved school district property tax levies for maintenance of building enhancements as specified; providing state assistance to equalize revenues generated by a portion of the voter approved levies; exempting revenues from local resources and cash balances under foundation entitlement computations; imposing administrative duties upon the school facilities commission; and providing for an effective date.

Be It Enacted by the Legislature of the State of Wyoming:

Section 1.

W.S. 21
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110 by creating a new subsection (b), 21
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102 by creating new subsections (k) through (n), 21
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310(a)(xv), 21
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313(e), 21
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701(b) and (c), 21
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114(a) by creating a new paragraph (xiv) and by renumbering (xiv) and (xv) and 21
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116(a)(intro) are amended to read:

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110.

Duties of boards of trustees.

(b)

If a school district expands or constructs school buildings and facilities beyond statewide adequacy standards established by the school facilities commission under W.S. 21
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115, the district board of trustees shall first ensure that district revenues are sufficient to cover the expenses of operating and maintaining the buildings and facilities which are in excess of state adequacy standards. For purposes of this subsection, revenues shall exclude school foundation program amounts distributed to the district under W.S. 21
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311, school district revenues enumerated under W.S. 21
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310 and revenues paid to the district for major building repair and replacement under W.S. 21
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109.

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102.

Maximum rate of school district tax; recapture of excess; permissive levies for building enhancements; equalization of permissive levies.

(k)

In addition to subparagraphs (a)(i)(A) and (ii)(A) of this section, a school district may levy an additional three (3) mills for the sole purpose of funding major building and facility repair and replacement expenditures as defined under W.S. 21
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109(a)(iii), and routine maintenance and repair expenditures as defined under W.S. 21
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109(a)(vi), for enhancements to district buildings and facilities beyond statewide adequacy standards established by the school facilities commission under W.S. 21
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115. Revenues from any levy imposed under this subsection or from any equalization assistance received under subsection (m) of this section shall not be expended for capital construction programs and shall not be reported as a revenue for purposes of W.S. 21
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310. The additional three (3) mills may be levied as follows:

(i)

Except as provided under paragraph (iii) of this subsection, up to one (1) mill with the annual approval of the board of trustees at a regular or special meeting following a public hearing announced by the board, which shall publish notice of the intent to levy all or a portion of the additional one (1) mill for local enhancement maintenance in a newspaper of general circulation within the district at least ten (10) days prior to the hearing; and

(ii)

Except as provided under paragraph (iii) of this subsection, up to two (2) mills with the approval of a majority of the voters voting on the proposition, for the period of time as stated in the proposition, but not to exceed four (4) years. The initial election and any subsequent election to modify or renew the levy shall be held on a date authorized under W.S. 22
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103. The mill equalized under subsection (m) of this section shall not exceed one (1) mill and applies only to the second mill approved by the voters and levied under this paragraph; or

(iii)

If the enhancement for which the mills are to be levied under this subsection has not been submitted to a vote of the electorate through a proposition for indebtedness or otherwise, up to three (3) mills with the approval of a majority of the voters voting on the proposition, for the period of time as stated in the proposition not to exceed four (4) years. The initial and subsequent elections under this paragraph shall be held on the date authorized under W.S. 22
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103. For levies imposed under this paragraph, the mill equalized under subsection (m) of this section shall apply to the third mill approved by the voters and shall not exceed one (1) mill.

(m)

Any school district levying at least one (1) mill under paragraph (k)(i) of this section and in excess of one (1) mill under paragraph (k)(ii) of this section, or if applicable, any district levying in excess of two (2) mills under paragraph (k)(iii) of this section, and whose assessed valuation per average daily membership is less than the statewide assessed valuation per average daily membership, shall to the extent funds have been made available by the legislature for purposes of this subsection, receive an amount payable annually from the school capital construction account created under W.S. 21
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111(a)(i), determined as follows:

(i)

Subtract the assessed valuation per average daily membership of the school district from the statewide assessed valuation per average daily membership;

(ii)

Multiply the difference by the lesser of one (1) or:

(A)

The number of mills in excess of one (1) levied by the district under paragraph (k)(ii) of this section; or

(B)

The number of mills levied in excess of two (2) by the school district under paragraph (k)(iii) of this section.

(iii)

Multiply the product obtained under paragraph (ii) of this subsection by the average daily membership of the school district.

(n)

The school facilities commission shall administer subsection (m) of this section subject to the following:

(i)

Assessed valuation of the property within any school district and the levies imposed by a district under subsection (k) of this section shall in accordance with W.S. 39
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102.1(c)(v), be as certified by the county assessor of each county comprising the school district to the state board of equalization on August 10;

(ii)

Statewide assessed valuation of property shall be as certified by the state board of equalization pursuant to W.S. 39
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102.1(c)(ii);

(iii)

For purposes of computations under subsection (m) of this section, each kindergarten average daily membership shall equal one (1) full average daily membership;

(iv)

Subject to amounts within the school capital construction account made available by the legislature for purposes of subsection (m) of this section, payments to districts shall be made on or before December 31 of each year in which a tax under paragraph (k)(ii) or (iii) of this section is levied by the district. If there is an insufficient amount within the school capital construction account for annual payments provided under subsection (m) of this section, the department shall reduce payments to districts on a pro rata basis.

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310.

Annual computation of district revenues.

(a)

To ensure revenues available to each district are uniformly sufficient to enable compliance with the uniform standards for educational programs prescribed under W.S. 21
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101 and 21
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102 and to secure state board accreditation of educational programs under W.S. 21
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304(a)(ii), the revenues specified under this subsection shall be deemed state revenues and shall be considered in determining the amount to be distributed to each district under W.S. 21
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311. A district shall make an annual computation of the following revenues:

(xv)

All other revenues received or collected by the district during the previous school year, but excluding any amount received from private contributions and gifts, excluding any revenues dedicated by law to the payment of bonded indebtedness,
any revenues generated from mill levies imposed by the district under W.S. 21
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102(k) and if applicable, equalized under W.S. 21
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102(m),
and any revenues from the disposition of school buildings and land pursuant to W.S. 21
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114(a)(x), and excluding fees or other charges imposed by the district for goods or services, such as rental fees and the price paid for admission into any place for recreation, entertainment or an athletic event. Upon application of a district, the department shall exclude from this paragraph revenue received by the district if the department finds that the revenue could not be used by the district to provide educational services to students.

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313.

Distribution of funds from foundation account; property tax and cash reserve adjustment; regulations.

(e)

Not later than January 31 of each fiscal year, the department shall compute the amount by which each district's operating balance and cash reserves at the end of the preceding fiscal year exceed fifteen percent (15%) of the total foundation program amount computed under W.S. 21
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309 for the preceding fiscal year. In making this calculation, the entire operating balance and cash reserves for each district for the fiscal year ending June 30, 1997, as computed by the department, shall be separately accounted for and excluded, until it has been completely expended by the district. Except as otherwise provided in 1997 Special Session Laws, chapter 3, section 306(e), as amended, that excess shall be deemed to be a state revenue under W.S. 21
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310(a) for the purpose of determining distributions under W.S. 21
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311 and amounts to be rebated under W.S. 21
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102. The department shall promulgate rules, including reporting requirements and procedures for districts, to implement this subsection. As used in this section, "operating balance and cash reserves" means those financial resources of the district which are not encumbered by the district board of trustees for expenditure to meet an existing legal obligation or otherwise restricted by law or regulation for expenditure on specific educational programs. For purposes of this subsection, any balance within a district's separate account established under W.S. 21
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109(e) for major building and facility repair and replacement shall be deemed restricted by law for expenditure as provided by W.S. 21
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109(e) and shall not be considered an operating balance and cash reserve under this section.
Any balance from revenues generated under mill levies imposed under W.S. 21
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102(k) and any balance from state assistance received under W.S. 21
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102(m) shall not be considered an operating balance and cash reserves for purposes of this subsection.

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701.

Submission of question to electors authorized; purposes for which indebtedness may be created; required public hearing on bonding proposition.

(b)

The purposes for which an indebtedness may be created shall be broadly construed. It is the intention of the legislature that school districts be empowered to create indebtedness under this section for any purpose which, directly or indirectly, enables the district to provide facilities which are in excess of the statewide standards for the adequacy of school buildings and facilities
provided the district is capable of funding operation and maintenance costs associated with the excess facilities
.

(c)

Prior to submitting a bonding proposition to district voters in accordance with subsection (a) of this section, the school district board of trustees shall hold at least two (2) public hearings within the district at which the board provides an explanation of the need to obtain district funding for building and facility features that are in excess of state standards for buildings and facilities
and the board identifies revenues available to the district for the maintenance and operation of the excess building and facility features
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Revenues identified by the board shall exclude school foundation program amounts distributed to the district under W.S. 21
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311, school district revenues enumerated under W.S. 21
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310 and revenues paid to the district for major building repair and replacement under W.S. 21
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109.

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114.

Powers and duties; school facilities office created; director.

(a)

The school facilities commission shall:

(xiv)

Administer optional mill equalization assistance to eligible school districts in accordance with W.S. 21
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102(m) and (n);

(xiv)
(xv)

With prior consultation with the select committee on school facilities, promulgate necessary rules and regulations to administer and implement this act.

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116.

School district facility plans; filing with commission; commission review; judicial review.

(a)

Each school district shall, in accordance with rules and regulations of the commission, and with the assistance of professional facility planning expertise and a representative of the commission, develop long range comprehensive school building and facility plans for the district which address district wide building and facility needs over a five (5) year period. The plan shall be in a form and format specified by rule and regulation of the commission and shall identify building and facility needs in accordance with the statewide adequacy standards, actions to remediate building and facility inadequacies including construction, renovation and major building and facility repair and replacement expenditures, and any local enhancements to buildings and facilities beyond statewide adequacy standards.
Subject to exclusions specified under W.S. 21
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110(b), revenues necessary to maintain and operate local enhancements shall be identified within the district's plan.
The plans shall include a response to each building and facility inadequacy identified by the needs assessment on a building-by-building, space-by-space basis. The plan shall also review and to the extent practical, identify nonconstruction alternatives to building and facility inadequacies such as building closure, modification of school boundaries, modification of school grade configurations and similar approaches. Demolition or use, lease or other methods of disposition of commission determined surplus buildings and facilities shall be incorporated as part of the district plan. The plan shall also specify identified alternative methods of building disposition, proposed allocation of costs incurred or revenues resulting from disposition and allocation of disposition revenues to offset any costs paid by the commission. In addition, district facility plans shall include:

Section 2.

This act is effective July 1, 2005.

(END)

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HB0010