File: FD - Facilities Funding

NOTE: While Colorado school districts are not required by law to adopt a policy on this subject, this policy reflects legal requirements school districts must follow. This sample policy contains the content/language that CASB believes best meets the intent of the law. However, the district should consult with its own legal counsel to determine appropriate language that meets local circumstances and needs.

The Board of Education may submit to the registered qualified electors of the school district, at any regular school election or at a special election called for the purpose, the question of contracting a bonded indebtedness for any of the following purposes:

1. Acquiring or purchasing buildings or grounds.

2. Enlarging, improving, remodeling, repairing or making additions to any school building.

3. Constructing or erecting school buildings.

4. Equipping or furnishing any school building, but only in conjunction with a construction project for a new building or for an addition to an existing building or in conjunction with a project for substantial remodeling, improvement, or repair of an existing building.

5. Improving school grounds.

6. Funding floating indebtedness.

7. Acquiring, constructing or improving any capital asset that the district is authorized by law to own.

NOTE: Include the following if applicable, i.e. the district has authorized a charter school or schools. C.R.S. 22-30.5-404.

8. Supporting charter school capital construction needs or the land and facilities needs of a charter school.

9. Constructing a building that the school district may lease to a state institution of higher education.

Before such a bond election, the specific needs for facilities shall be made clear to the general public, and careful estimates will be made as to the amounts required for the sites, buildings and equipment.

Following approval by the voters, the bonds to be issued will be advertised in newspapers and national financial journals, the date of issue being coordinated with tax collection dates, payments on bonds already outstanding and favorable market conditions. Disposition of the bonds then shall be accomplished by public sale on the basis of sealed bids. The Board reserves the right to reject any and all bids.

The bond and interest fund of the district comes directly and solely out of the levy of taxes initiated by the successful bond election. In anticipation of interest and principal payments, the Board will adopt annual resolutions authorizing the withdrawal from the bond and interest fund of the amounts needed to meet the payments due and the deposit of such moneys with the depository for honoring the bonds and interest coupons presented for payment.

The building fund is the fund authorized by the approval of the bond issue. The initial receipts from the sale of bonds are deposited in this fund, and actual expenditures for sites, buildings and equipment are made from it. The Board of Education will adopt an annual budget resolution authorizing the withdrawal from the fund of the amounts needed to meet the payments due architects, contractors and other individuals or firms. The Board shall receive periodic reports on the expenditures made from this fund as compared with the original appropriations for the various projects included.

(Adoption date)

LEGAL REFS.: C.R.S. 22-30.5-401 et seq. (Charter School Capital Facilities Financing Act)

C.R.S. 22-41-110 (payment of bonds)

C.R.S. 22-41.5-101 et seq. (weakening of debt limitations)

C.R.S. 22-42-101 et seq. (bonded indebtedness)

C.R.S. 22-45-103 (1)(b) and (d) (bond redemption and special building and technology funds)

C.R.S. 29-14-101 et seq. (Bond Anticipation Note Act)

CROSS REFS.: FDA, Bond Campaigns

LBDA*, Facilities Planning and Funding for District Charter Schools

NOTE 1: The last citation above refers to that section of the law which allows a school district to issue bond anticipation notes as an interim debenture before the Board approves the sale and issuance of any bonds authorized by a bond election.

NOTE 2: In addition to the purpose of acquiring, maintaining or constructing schools, moneys in the special building fund can be used to purchase and install building security technology or instructional and informational technology, including expenditures for software and staff training related to the new technology. A vote by eligible elections approving a levy of up to 10 mills for up to three years is required.

[Revised January 2018]