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INTRODUCED
January 23, 2002
H. 4464
Introduced by Reps. McGee, Coates, M. Hines, J. Hines and Askins
L. Printed 1/23/02--S.
Read the first time January 23, 2002.
EXPLANATION OF IMPACT:
Enactment of this bill would have no fiscal impact on the General Fund of the State nor on federal and/or other funds.
LOCAL GOVERNMENT IMPACT:
Florence County would incur a financial obligation of approximately $1,841,000, which includes the bond, interest, and issuance costs. Assuming in Florence County School District 1 that one mill is worth $263,000, the millage increase needed to cover the obligation is 7 mills. Therefore, the estimated property tax increase for a $100,000 home would be $28.
Approved By:
Don Addy
Office of State Budget
TO AUTHORIZE THE BOARD OF TRUSTEES FOR SCHOOL DISTRICT NO. 1 IN FLORENCE COUNTY TO ADJUST THE SCHOOL DISTRICT'S TAX MILLAGE FOR THE 2002-2003 SCHOOL YEAR TO OFFSET THE MIDYEAR BUDGET CUTS MANDATED BY THE BUDGET AND CONTROL BOARD OF THE STATE OF SOUTH CAROLINA FOR THE SCHOOL DISTRICT DURING THE 2001-2002 SCHOOL YEAR, AND TO PROVIDE THAT THE COUNTY AUDITOR SHALL LEVY THE MILLAGE UPON ALL PROPERTY WITHIN THE SCHOOL DISTRICT, AND THE COUNTY TREASURER SHALL COLLECT THE TAXES LEVIED AND DISBURSE THE FUNDS.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. The General Assembly finds that owing to reductions in state appropriations for Fiscal Year 2002, School District No. 1 of Florence County (the School District) will experience a shortfall in funds necessary to meet its operating budget for Fiscal Year 2002. The General Assembly has determined to authorize the Board of Trustees of the School District (the Board) to issue general obligation bonds of the School District to provide funds necessary to meet its costs of operations and maintenance. Additionally, the General Assembly has determined to authorize the School District to increase millage levied for operations and maintenance for Fiscal Year 2003 to replace funds lost as a consequence of reductions in state appropriations.
SECTION 2. In order to raise funds to meet costs of operation and maintenance of the School District, the Board may issue and sell a general obligation bond or bonds of the School District (the Bond), as a single issue or several issues, without the necessity of holding an election, in an amount not to exceed the lesser of: (1) the available eight percent debt limit as prescribed by Article X, Section 15 of the South Carolina Constitution; or (2) the difference between the total amount of state appropriations anticipated in the School District's budget for Fiscal Year 2002 as originally adopted and the actual amount of state funds, as certified by the Office of the Comptroller General, which the School District will receive for Fiscal Year 2002, plus issuance costs.
SECTION 3. The Bond shall mature no more than 15 months from the date of its issuance.
SECTION 4. The Bond may be issued with a provision permitting its prepayment before its stated maturity upon terms prescribed by the Board.
SECTION 5. The Bond must be in the form of a fully registered bond upon conditions the Board prescribes.
SECTION 6. The Bond must be made payable at places, within or without the State, prescribed by the Board.
SECTION 7. The Bond must bear interest at a rate determined in the manner and payable upon the dates prescribed by the Board.
SECTION 8. The Bond must be in a denomination or denominations and executed in a manner the Board prescribes.
SECTION 9. The Bond must be sold at a price of not less than par and accrued interest, if any, from its dated date to the date of its delivery. The Bond may be sold at public sale pursuant to Title 59, Chapter 71, Section 130 of the Code of Laws of South Carolina, 1976, as amended, and Title 11, Chapter 27 of the Code of Laws of South Carolina, 1976, as amended, or at private sale and without advertisement if, not less than seven days prior to its delivery, notice of intention to sell the Bond at private sale is given by publication in a newspaper of general circulation in the School District. The notice must set forth the purchaser, the purchase price, interest rate, and maturity date of the Bond.
SECTION 10. For the payment of the principal and interest of the Bond, the full faith, credit, and taxing power of the School District shall be irrevocably pledged, and there must be levied annually by the Auditor of Florence County, and collected by the Treasurer of Florence County, in the same manner as county taxes are levied and collected on all taxable property in the School District, a tax sufficient to pay the principal and interest of the Bond.
SECTION 11. The principal of and interest on the Bond shall have the tax-exempt status prescribed by Title 12, Chapter 2, Section 50, Code of Laws of South Carolina, 1976, as amended.
SECTION 12. The proceeds derived from the sale of the Bond issued under the provisions of this act must be paid to the Treasurer of Florence County and must be used to meet the costs of its issuance, and to pay the costs of operation and maintenance of the School District or to pay all or a portion of the principal of and interest on a tax anticipation note of the School District issued as of September 20, 2001, as determined by the Board.
SECTION 13. Notwithstanding any other provision of law, the Board is hereby authorized to increase for Fiscal Year 2003 the number of mills levied for operation and maintenance of the School District. For Fiscal Year 2003 the Board may increase the millage levy over the Fiscal Year 2002 millage levy by the number of mills determined by the Board to be necessary to replace any decrease in state appropriations to the School District from the amount of state appropriations anticipated in the School District's budget for Fiscal Year 2002 as originally adopted. For Fiscal Year 2004 the board shall reduce the millage rate by the number of mills that were levied pursuant to this act. In subsequent fiscal years, the Board shall not increase the number of mills levied for operations and maintenance of the School District over that levied for Fiscal Year 2002 except as provided by Act 239 of 1981 and the general law of the State.
SECTION 14. The powers and authorizations conferred by this act upon the Board are in addition to all other powers and authorizations previously vested in the Board and may be availed of pursuant to action taken at a regular or special meeting of such Board of Trustees.
SECTION 15. No action other than that prescribed in this act must be taken to effect the issuance of the Bond authorized in this act, nor is the Board required to obtain the approval of a public agency for an action taken pursuant to the authorizations of this act.
SECTION 16. This act takes effect upon approval by the Governor.
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