15-1021

15-1021. Limitation on bonded indebtedness;
limitation on authorization and issuance of bonds

(L10, Ch. 17, sec. 16)

A. Until December 31, 1999, a school district may issue class A bonds for the
purposes specified in this section and chapter 4, article 5 of this title to an amount in
the aggregate, including the existing indebtedness, not exceeding fifteen per cent of the
taxable property used for secondary property tax purposes, as determined pursuant to
title 42, chapter 15, article 1, within a school district as ascertained by the last
property tax assessment previous to issuing the bonds.

B. From and after December 31, 1998, a school district may issue class B bonds for
the purposes specified in this section and chapter 4, article 5 of this title to an
amount in the aggregate, including the existing class B indebtedness, not exceeding five
per cent of the taxable property used for secondary property tax purposes, as determined
pursuant to title 42, chapter 15, article 1, within a school district as ascertained by
the last assessment of state and county taxes previous to issuing the bonds, or one
thousand five hundred dollars per student count as determined pursuant to section 15-902,
whichever amount is greater. A school district shall not issue class B bonds until the
proceeds of any class A bonds issued by the school district have been obligated in
contract. The total amount of class A and class B bonds issued by a school district
shall not exceed the debt limitations prescribed in article IX, section 8, Constitution
of Arizona.

C. Until December 31, 1999, a unified school district, as defined under article IX,
section 8.1, Constitution of Arizona, may issue class A bonds for the purposes specified
in this section and chapter 4, article 5 of this title to an amount in the aggregate,
including the existing indebtedness, not exceeding thirty per cent of the taxable
property used for secondary property tax purposes, as determined pursuant to title 42,
chapter 15, article 1, within a unified school district as ascertained by the last
property tax assessment previous to issuing the bonds.

D. From and after December 31, 1998, a unified school district, as defined under
article IX, section 8.1, Constitution of Arizona, may issue class B bonds for the
purposes specified in this section and chapter 4, article 5 of this title to an amount in
the aggregate, including the existing class B indebtedness, not exceeding ten per cent of
the taxable property used for secondary tax purposes, as determined pursuant to title 42,
chapter 15, article 1, within a school district as ascertained by the last assessment of
state and county taxes previous to issuing the bonds, or one thousand five hundred
dollars per student count as determined pursuant to section 15-902, whichever amount is
greater. A unified school district shall not issue class B bonds until the proceeds of
any class A bonds issued by the unified school district have been obligated in
contract. The total amount of class A and class B bonds issued by a unified school
district shall not exceed the debt limitations prescribed in article IX, section 8.1,
Constitution of Arizona.

E. No bonds authorized to be issued by an election held after July 1, 1980 and
before November 24, 2009 may be issued more than six years after the date of the
election, except that class A bonds shall not be issued after December 31, 1999. No bonds
authorized to be issued by an election held after November 24, 2009 may be issued more
than ten years after the date of the election.

F. Except as provided in section 15-491, subsection A, paragraph 3, bond proceeds
shall not be expended for items whose useful life is less than the average life of the
bonds issued, except that bond proceeds shall not be expended for items whose useful life
is less than five years.

G. A joint technical education district shall not spend class B bond proceeds to
construct or renovate a facility located on the campus of a school in a school district
that participates in the joint district unless the facility is only used to provide
career and technical education and is available to all pupils who live within the joint
technical education district. If the facility is not owned by the joint technical
education district, an intergovernmental agreement or a written contract shall be
executed for ten years or the duration of the bonded indebtedness, whichever is
greater. The intergovernmental agreement or written contract shall include provisions:

1. That preserve the usage of the facility renovated or constructed, or both, only
for career and technology programs operated by the joint technical education district.

2. That include the process to be used by the participating district to compensate
the joint technical education district in the event that the facility is no longer used
only for career and technology education programs offered by the joint technical
education district during the life of the bond.

H. A school district shall not authorize, issue or sell bonds pursuant to this
section if the school district has any existing indebtedness from impact aid revenue
bonds pursuant to chapter 16, article 8 of this title, except for bonds issued to refund
any bonds issued by the governing board.