FILE: DEA
Cf: DFD
DEBT LIMITATION
The Iberia Parish School Board may, as authorized by the Constitution and laws of the State, borrow money, incur debt, issue bonds, levy taxes, or pledge uncollected taxes or revenues, with the approval of the electorate and the consent of the State Bond Commission. Before incurring any form of debt whatsoever, the School Board is required by law to obtain the consent and approval of the State Bond Commission. The School Board may incur debt and issue bonds for the purposes of acquiring and/or improving lands, purchasing, erecting and/or improving school buildings, and/or for other purposes allowed by state law which, including the existing bonded debt of the School Board for all bonded purposes, may not exceed thirty-five per centum (35%) of the assessed valuation of all taxable property in the school district as ascertained by the last assessment for the district.
Notification to the State Bond Commission shall be required by the School Board whenever the transfer of funds authorizing indebtedness or payment on outstanding indebtedness has not been made in a timely manner.
UTILIZATION OF CREDIT AUTHORITY
The School Board, like other governmental and quasi-governmental entities, is empowered to issue various forms of tax-exempt debt. The interest on such debt is exempt from federal (and sometimes, state) taxation. There are many circumstances in which the application of specific borrowing techniques is in the interest of the School Board.
Such borrowing is closely regulated by federal law, Internal Revenue Service regulations, specific provisions of the Tax Equity and Fiscal Responsibility Act (TEFRA), and various laws. Within the established laws, however, the School Board has a great deal of latitude with regard to the timing and general nature of its financing activities. The School Board shall utilize those financing alternatives and techniques which produce positive financial advantages.
The Superintendent shall, from time to time, recommend to the School Board various financing opportunities which should be of ultimate financial and operational benefit to the School Board. School Board personnel shall monitor the existing and potential financing alternatives to ensure that appropriate advantage is being taken of the special tax-exempt financing alternatives which are available to the School Board.
RECORDKEEPING
The School Board shall continuously maintain:
A list of all Louisiana municipal securities for which the School
Board is the issuer or is obligated to repay;
A copy of all continuing disclosure agreements relating to the
securities to which the School Board is a party;
If, pursuant to a continuing disclosure agreement in which the School Board is a party, the School Board shall be responsible for filing notices of changes in bond ratings, a list of current ratings for such securities, if any.
All records required to be kept by the School Board under state law shall be subject to inspection by the legislative auditor and/or the School Board’s auditor.
Municipal securities shall mean bonds, notes, certificates, or other written obligations for the repayment of borrowed money, including obligations to refund any security, which are issued by the School Board.
Proposed Revision: April, 2009 & November, 2014
Board Approved: 9-7-16
Ref: La. Rev. Stat. Ann. §§17:89, 17:1371, 18:1281, 18:1282, 18:1283, 18:1284, 18:1293, 39:471, 39:554, 39:562, 39:1410.60, 39:1421, 39:1438
Board minutes, 9-7-16
Iberia Parish School Board