HP0275, LD 349, item 1, An Act To Require the Inclusion of a Financial Statement on School Administrative Unit Bond Obligations When Voting on a School Construction Project

An Act To Require the Inclusion of a Financial Statement on School Administrative Unit Bond Obligations When Voting on a School Construction Project

Be it enacted by the People of the State of Maine as follows:

Sec. 1. 20-A MRSA §15904, sub-§4, as amended by PL 2005, c. 12, Pt. WW, §§8 and 9, is further amended to read:

4. Form. The article shall indicate:

D. The estimated amount of the additional operating costs during each of the first 2 years; and

E. The That the school administrative unit is responsible for the local share of annual principal and interest payments for this school construction project included in the total cost of education appropriated pursuant to section 15690, subsection 1, if any, and for the annual principal and interest payments for the non-state-funded portion of this school construction project . ;

F. If the total indebtedness incurred exceeds $20,000, in a statement prepared by the treasurer of the school administrative unit, the amount of indebtedness incurred, including indebtedness associated with bonds, lease agreements or lease-purchase agreements;

G. In a statement prepared by the treasurer of the school administrative unit, the total amount of bonds of the school administrative unit outstanding and unpaid, authorized and unissued and contemplated to be issued if the enactment submitted to the electorate is ratified. The statement must also include an estimate and explanation of costs involved, including varying interest rates, the estimated cost of the interest on the bond amount to be issued and the total cost of principal to be paid at maturity; and

H. That the validity of the bonds and the voters' ratification of the bonds may not be affected by any errors in the estimates made pursuant to paragraph F. If the actual amount of the total debt service for the bond issue varies from the estimate, the ratification by the electors is conclusive and the validity of the bond issue is not affected by reason of the variance.

SUMMARY

This bill requires that the article submitted to the voters for a school construction project include a treasurer's statement outlining the total bonding capacity of the school administrative unit and the estimated cost of repaying the debt. The bill also clarifies that any errors in the estimates provided in the treasurer's statement do not invalidate ratification of the article. The bill requires that a treasurer's statement of the amount of indebtedness incurred, including indebtedness associated with bonds, lease agreements or lease-purchase agreements, must be provided when the indebtedness incurred exceeds $20,000.

HP0275 LD 349	First Regular Session - 125th Maine Legislature		LR 205 Item 1
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