15-1102

15-1102. Disposition of proceeds from sale or
lease of school property; school plant monies; payment of bonded
indebtedness; definition

A. The governing board, or the superintendent or chief administrative officer with
the approval of the governing board, may expend the proceeds from the sale or lease of
school property for the payment of any outstanding bonded indebtedness of the school
district or for the reduction of school district taxes.

B. A common school district or high school district which has an outstanding bonded
indebtedness of seven per cent of the current year's assessed valuation or less or a
unified school district which has an outstanding bonded indebtedness of fourteen per cent
of the current year's assessed valuation or less may expend the proceeds from the sale or
lease of school property for maintenance and operation or capital outlay, subject to the
following limitations:

1. During the period that proceeds from the sale or lease of school property are
used for capital outlay, the school district shall not call an override election to
exceed the capital outlay revenue limit, except that during the last year of that period
the school district may authorize an override election to exceed the capital outlay
revenue limit beginning with the following year.

2. The total sum of the proceeds from the sale of school property before July 1,
1998 or the lease of school property for more than one year expended for maintenance and
operation shall not exceed fifteen per cent of the revenue control limit as provided in
section 15-947, subsection A in any year of which ten per cent may be used without voter
approval and an additional five per cent may be used if the additional amount is approved
by a majority of the qualified electors voting in an election called for such
purposes. The election shall be conducted and notice and ballots shall be prepared as
provided in section 15-481. Proceeds from the sale of school property from and after
June 30, 1998 shall not be expended for maintenance and operation.

3. In any fiscal year in which a district utilizes budget increases as authorized
in section 15-481, subsection E or F or section 15-482 or utilizes the proceeds from the
sale of school property before July 1, 1998 or the lease of school property for more than
one year for maintenance and operation or any combination of these provisions, the total
amount of these increases which may be expended is equal to fifteen per cent of the
revenue control limit for that year as provided in section 15-947, subsection A, provided
that the following maximum amount is attributable to the use of any one provision:

(a) Fifteen per cent of the revenue control limit when using the proceeds from the
sale before July 1, 1998 or lease of school property for maintenance and operation as
provided in this section.

(b) Fifteen per cent of the revenue control limit when using a budget increase as
provided in section 15-481, subsection E or F, or both.

C. A common school district or high school district which has an outstanding bonded
indebtedness of greater than seven per cent of the current year's assessed valuation or a
unified school district which has an outstanding bonded indebtedness of greater than
fourteen per cent of the current year's assessed valuation may expend the proceeds from
the lease or sale of school property as follows:

1. For maintenance and operation, the expenditure may not exceed the lesser of the
limit in subsection B, paragraph 2 or 3 of this section or the amount of the proceeds
from the lease of school property multiplied by .25.

2. For capital outlay, the expenditure of the proceeds:

(a) From the sale of school property may not exceed the amount of the proceeds
multiplied by .62.

(b) From the lease of school property is not limited.

D. The governing board, or the superintendent or chief administrative officer with
the approval of the governing board, shall promptly deposit monies received for and
derived from the sale or lease of school property with the county treasurer who shall
establish three school plant funds, one fund for monies received from the sale before
July 1, 1998 or lease of school property for more than one year, one fund for monies
received from the sale of school property from and after June 30, 1998 and one fund for
monies received from the lease of school property for one year or less. The county
treasurer shall credit the deposits to the respective school plant fund of the respective
school district. Monies placed to the credit of the school plant funds may be expended
as provided in this section. The school plant funds are continuing funds not subject to
reversion.

E. Notwithstanding subsection C of this section, the governing board, or the
superintendent or chief administrative officer with the approval of the governing board,
may expend the proceeds from the sale before July 1, 1998 or lease of school property for
the additional maintenance and operations expenses incurred as the result of operating on
a year-round school year operation basis pursuant to section 15-855. The amount that the
governing board, superintendent or chief administrative officer may expend for a
year-round school year operation, as provided in this subsection, is limited to the
actual maintenance and operations costs incurred as the result of the year-round school
year operation as documented in the school district's budget as provided in section
15-855. A governing board, superintendent or chief administrative officer that utilizes
this subsection is subject to all other limitations prescribed in this section regarding
the expenditure of proceeds from the sale before July 1, 1998 or lease of school
property.

F. Notwithstanding subsections B and D of this section, if the school district
electors approve the sale of school property and the use of the proceeds for the purchase
of school sites or the construction, improvement or furnishing of school facilities, the
proceeds from the sale shall be put in a separate fund for use for the approved purpose
as prescribed by the uniform system of financial records. This fund is a continuing fund
not subject to reversion, except that after ten years any unexpended monies shall be put
in the school plant fund for use as prescribed in this section.

G. Proceeds from sales by condemnation or sales under threat of condemnation may be
deposited with the county treasurer for deposit in the condemnation fund or the school
plant fund of the school district. The condemnation fund is a continuing fund not
subject to reversion, except that after ten years any unspent monies shall be placed in
the school plant fund to be used as prescribed in this section. The governing board, or
the superintendent or chief administrative officer with the approval of the governing
board, may apply the proceeds in the condemnation fund to:

1. The payment of any outstanding bonded indebtedness of the school district which
is payable from the levy of taxes upon property within the school district.

2. Construct, acquire, improve, repair or furnish school facilities or sites after
notice and a hearing.

H. Proceeds from a right-of-way settlement shall be deposited with the county
treasurer for deposit in the condemnation fund of the school district. The governing
board, or the superintendent or chief administrative officer with the approval of the
governing board, shall apply such proceeds in the condemnation fund to construct,
acquire, improve, repair or furnish school facilities or sites after notice and a
hearing.

I. For the purposes of this section, "capital outlay" means unrestricted capital
outlay as prescribed in section 15-903, subsection C.