20-9-502. Purpose and authorization of building reserve fund by election -- levy for school transition costs. (1) The trustees of any district, with the approval of the qualified electors of the district, may establish a building reserve for the purpose of raising money for the future construction, equipping, or enlarging of school buildings, for the purpose of purchasing land needed for school purposes in the district, or for the purpose of funding school transition costs as provided in subsection (5). In order to submit to the qualified electors of the district a building reserve proposition for the establishment of or addition to a building reserve, the trustees shall pass a resolution that specifies:
     (a) the purpose or purposes for which the new or addition to the building reserve will be used;
     (b) the duration of time over which the new or addition to the building reserve will be raised in annual, equal installments;
     (c) the total amount of money that will be raised during the duration of time specified in subsection (1)(b); and
     (d) any other requirements under 15-10-425 and 20-20-201 for the calling of an election.
     (2) The total amount of building reserve, less the amount provided for in subsection (5), when added to the outstanding indebtedness of the district may not be more than the limitations provided in 20-9-406. Except as provided in subsection (5)(b), a building reserve tax authorization may not be for more than 20 years.
     (3) The election must be conducted in accordance with the school election laws of this title, and the electors qualified to vote in the election must be qualified under the provisions of 20-20-301. The ballot for a building reserve proposition must be substantially in compliance with 15-10-425.
     (4) The building reserve proposition is approved if a majority of those electors voting at the election approve the establishment of or addition to the building reserve. The annual budgeting and taxation authority of the trustees for a building reserve is computed by dividing the total authorized amount by the specified number of years. The authority of the trustees to budget and impose the taxation for the annual amount to be raised for the building reserve lapses when, at a later time, a bond issue is approved by the qualified electors of the district for the same purpose or purposes for which the building reserve fund of the district was established. Whenever a subsequent bond issue is made for the same purpose or purposes of a building reserve, the money in the building reserve must be used for the purpose or purposes before any money realized by the bond issue is used.
     (5) (a) The trustees may submit a proposition to the qualified electors of the district for a levy to provide funding for transition costs incurred when the trustees:
     (i) open a new school under the provisions of Title 20, chapter 6;
     (ii) close a school;
     (iii) replace a school building; or
     (iv) consolidate with or annex another district under the provisions of Title 20, chapter 6.
     (b) Except as provided in subsection (5)(c), the total amount the trustees may submit to the electorate for transition costs may not exceed the number of years specified in the proposition times the greater of 5% of the district's maximum general fund budget for the current year or $250 per ANB for the current year. The duration of the levy for transition costs may not exceed 6 years.
     (c) If the levy for transition costs is for consolidation or annexation:
     (i) the limitation on the amount levied is calculated using the ANB and the maximum general fund budget for the districts that are being combined; and
     (ii) the proposition must be submitted to the qualified electors in the combined district.
     (d) The levy for transition costs may not be considered as outstanding indebtedness for the purpose of calculating the limitation in 20-9-406.

     History: En. 75-7205 by Sec. 344, Ch. 5, L. 1971; amd. Sec. 13, Ch. 83, L. 1971; amd. Sec. 1, Ch. 29, L. 1975; R.C.M. 1947, 75-7205; amd. Sec. 62, Ch. 614, L. 1981; amd. Sec. 8, Ch. 555, L. 1991; amd. Sec. 18, Ch. 237, L. 2001; amd. Sec. 28, Ch. 495, L. 2001.