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Indicates Matter Stricken
Indicates New Matter
INTRODUCED
April 25, 2005
S. 786
L. Printed 4/25/05--S.
Read the first time April 25, 2005.
TO AUTHORIZE THE BOARD OF TRUSTEES FOR FLORENCE COUNTY SCHOOL DISTRICT 4 TO ISSUE AND SELL GENERAL OBLIGATION BONDS OF THE SCHOOL DISTRICT IN AN AMOUNT NOT TO EXCEED NINE HUNDRED THOUSAND DOLLARS, TO PRESCRIBE THE CONDITIONS UNDER WHICH THE BONDS MUST BE ISSUED, AND THE PURPOSE FOR WHICH THE PROCEEDS MUST BE EXPENDED, AND TO PROVIDE FOR THE PAYMENT OF THE BONDS.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. The General Assembly finds that Florence County School District 4 (the school district) presently has a general obligation indebtedness limit under Article X, Section 15 of the South Carolina Constitution (the debt limit) of not less than one million fifty thousand dollars, and that there is currently chargeable against the school district's debt limit general obligation indebtedness in the amount of one hundred twenty-five thousand dollars. The school district may therefore issue general obligations indebtedness in an amount not more than nine hundred twenty-five thousand dollars without holding a referendum in the school district.
The General Assembly also finds that, due to reductions in appropriations from the State of South Carolina beginning in fiscal year 2000-2001, the school district has been required to spend down its previous fund balance in order to balance its annual budget, and the school district anticipates a further deficit for fiscal year 2005-2006. In order to restore its prior fund balance, to provide needed operating monies for fiscal year 2005-2006 and subsequent fiscal years, and to reduce the millage levy that would otherwise be required for fiscal year 2005-2006, the school district wishes to use its available debt limit to issue not exceeding nine hundred thousand dollars in general obligation bonds, the proceeds of which shall be used to restore the school district's fund balance and to meet other expenses of the district in fiscal year 2005-2006 and thereafter.
SECTION 2. In order to raise funds for the purpose of paying the amount of the revenue deficit described in Section 1, the board of trustees of the school district may issue and sell general obligation bonds of the school district, without the necessity of holding an election, in an amount not to exceed nine hundred thousand dollars.
SECTION 3. Not more than three hundred thousand dollars of these bonds of the total bond authorization of nine hundred thousand dollars may be issued in any one year. The bonds must be dated prior to September first of the year of issuance, and must mature in ten years or less.
SECTION 4. The bonds must be issued with a provision permitting its prepayment prior to its stated maturity at par and accrued interest.
SECTION 5. The bonds must be in the form of fully registered bonds upon conditions as the board of trustees of the school district may prescribe.
SECTION 6. The bonds must be made payable at places, within or without the State, as the board of trustees of the school district shall provide.
SECTION 7. The bonds must bear interest at a rate prescribed by the board of trustees of the school district.
SECTION 8. The bonds must be in a denomination or denominations and executed in a manner, as the board of trustees of the school district shall provide by resolution.
SECTION 9. The bonds must be sold at a price of not less than par and accrued interest to the date of its delivery. The bonds may be sold at public sale pursuant to Section 59-71-130 of the 1976 Code or at private sale and without advertisement if, not less than seven days prior to its delivery, notice of intention to sell the bonds at private sale is given by publication in a newspaper of general circulation in the school district. The notice must set forth the purchasers, the purchase price, interest rate, and maturity date of the bonds.
SECTION 10. For the payment of the principal and interest of the bonds the full faith, credit, and taxing power of the school district is 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 bonds.
SECTION 11. The principal and interest of the bonds must have the tax-exempt status prescribed by Section 12-1-60 of the 1976 Code.
SECTION 12. The proceeds derived from the sale of the bonds issued under the provisions of this act must be paid to the Treasurer of Florence County and used to restore the school district's fund balance and to meet other expenses of the district in fiscal year 2005-2006 and thereafter.
SECTION 13. The powers and the authorizations conferred by this act upon the board of trustees of the school district are in addition to all other powers and authorizations previously vested in the board of trustees of the school district and may be availed of pursuant to action taken at a regular or special meeting of such board of trustees.
SECTION 14. No action other than that prescribed in this act must be taken to affect the issuance of the bonds authorized in this act, nor is the board of trustees of the school district required to obtain the approval of a public agency for an action taken pursuant to the authorizations of this act.
SECTION 15. This act takes effect upon approval by the Governor.
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