Sec. 4. How financed. To procure funds for the purposes of this Act, the district is authorized to issue bonds and notes but may not incur a total indebtedness exceeding the sum of $6,000,000. Each bond must have inscribed upon its face the words: "City of Calais School District" and must bear interest at a rate the trustees determine and be payable semiannually. The bonds may be issued to mature serially or made to run for such periods as the trustees determine but none may run for a period longer than 30 years. A note or bond issued by the district must be signed by the treasurer and countersigned by the president, and, if coupon bonds are issued, each coupon must be attested by a facsimile signature of the president and treasurer. The treasurer shall give bond to the district in such sum and with such sureties as the trustees determine, and the bond must remain in the custody of the Clerk of the City of Calais. The expenses of the bond must be paid by the district. The district is authorized to enter into an agreement with the Federal Government or any certified corporation or board to loan money or otherwise assist in the financing of a project that the district is authorized to carry out.

Sec. 5. Sinking fund. If a bond is made to run for a period of years, a sinking fund must be established by the trustees for the purpose of redeeming the bond when the bond becomes due. The sinking fund may not be less than 3 1/3% of the par value of the bond issued and outstanding, which may be deposited in a savings bank or savings department of a national bank within the State or may be invested in any United States government bonds, state bonds or the bonds of any political subdivision the trustees may choose. If sufficient funds have accumulated in the sinking fund, whenever any bond issued by the district becomes due or can be purchased by the trustees on favorable terms, the trustees shall redeem or purchase and cancel the bond. A bond that is cancelled or redeemed may not be reissued. In case the amount in the sinking fund is not sufficient to pay the total amount of the bonds falling due at one time, authority to issue new bonds sufficient to redeem the bonds that can not be redeemed from the sinking fund is granted to the district, but in no case may a new bond run beyond 30 years from the date of the original issue.

Sec. 6. Provisions for sinking fund. The trustees shall determine the sum to be paid annually into the sinking fund, or, if the bonds authorized by this Act are issued to mature serially, the amount required each year to meet the bonds falling due and the sum required each year to meet the interest on the bonds or other obligations and other necessary expenses in the district. Before April 1st of each year, the trustees shall issue a warrant in the same form as the warrant of the Treasurer of State for taxes, with proper changes, to the assessors of the City of Calais, requiring the assessors to assess the sum determined upon taxable estates within the district and to commit the assessment to the collector of the City of Calais, who has the authority to collect state, county and municipal taxes. On or before December 31st of the year in which the tax is levied, the treasurer of the City of Calais shall pay the amount of the tax assessed against the district to the treasurer of the district. In the case of the failure on the part of the treasurer of the City of Calais to pay the amount of the tax assessed against the district or in the case of a failure to pay any part of the amount of the tax assessed against the district on or before December 31st of the year in which the tax is levied, the treasurer of the district may issue a warrant for the amount of the tax, or so much as remains unpaid, to the sheriff of Washington County requiring the sheriff to levy by distress and sale on real and personal property of any of the inhabitants of the district, and the sheriff or a sheriff's deputy shall execute the warrant except as otherwise provided in this Act. The same authority that is vested in county officials for the collection of county taxes is vested in the trustees for the collection of taxes within the district.

Sec. 7. Provisions for termination of board of trustees. When all of the school buildings have been completed, equipped and occupied by pupils of the district and the board of trustees of the district has discharged all of its principal obligations, and the property of the district is free and clear of all indebtedness, the board of trustees automatically ceases to function and all of the duties, management, care and maintenance revert to the school board of the City of Calais or other board that has jurisdiction over similar school property. The president and the treasurer of the district shall execute, sign and deliver a deed of all the property in the district to the City of Calais. All money remaining in the treasury of the board of trustees at the time the board ceases to function must be deposited to the credit of the City of Calais and may be used only for school purposes and must be kept separate from all other money until authorized by the municipal officers of the City of Calais to be expended as authorized under this Act.

Sec. 8. Effective date of Act; referendum. This Act takes effect when approved only for the purpose of permitting its submission to the legal voters of the City of Calais at the city election to be held on the first Tuesday of November 2001, or at a special city election called for the purpose not later than 8 months after the approval of this Act. Any special city election must be called, notified and conducted according to law.

The Clerk of the City of Calais shall prepare the required ballots on which the clerk shall reduce the subject matter of this Act to the following question: "Do you favor increasing the borrowing capacity of the City of Calais School District, as passed by the 120th Legislature?" and the voters shall indicate by a cross or check mark placed against the words "Yes" or "No" their opinion of the same.

This Act takes effect immediately upon its acceptance by a majority of the legal voters voting at the election, but only if the total number of votes cast for and against the acceptance of this Act is at least 20% of the total vote for all candidates for Governor in the City of Calais at the next previous gubernatorial election.

The result of the vote must be declared by the municipal officers of the City of Calais and due certificate must be filed by the Clerk of the City of Calais with the Secretary of State.

Sec. 9. Continuity. The trustees in office on the effective date of this Act continue to hold office until the end of the terms to which they were appointed and to have those powers, duties and responsibilities set out in prior law. Nothing in this Act in any way amends, modifies or changes any action previously undertaken by the district. All bonds, notes, contracts and other obligations existing on the effective date of this Act are unaffected.

Sec. 10. P&SL 1937, c. 27, as amended by P&SL 1975, c. 17, is repealed.

SUMMARY

This bill revises and increases the debt limit of the charter of the Calais School District.