Meeting of the Board of Regents | April 2009

SUMMARY

Issue for Decision (Consent Agenda)

              Should the Regents consent to allow the Olean City School District to increase the indebtedness of the school district under the provisions of the State Constitution and the Local Finance law?

Reason(s) for Consideration

              Required by Article 8, Section 4, Paragraph (h) of the State Constitution and by Local Finance Law section 104.00(c)

Proposed Handling

              This petition for consent will come before the Regents EMSC Committee and the full Board at the April 2009 meeting for discussion and action.

Procedural History

              The Board of Regents is required to give consent for such petitions prior to the petition being forwarded to the State Comptroller for final consideration.  The Regents EMSC Committee has discussed in the past similar requests from school districts to exceed their debt limit and is familiar with the guidelines and procedures for granting consent.

Background Information

              The Department received a petition from the Board of Education of the Olean City School District seeking consent of the Board of Regents to an increase in the indebtedness of the Olean City School District.  The State Constitution requires that any increase in the constitutional limit on local indebtedness for a school district wholly or partly within a city of less than 125,000 inhabitants receive: (1) the approving vote of 60 percent or more of the duly qualified voters; (2) the consent of the Regents; and (3) the consent of the State Comptroller.  It appears from the records of the State Education Department that the School District lies within the City of Olean.  The documentation supporting the petition verifies that more than 60 percent of duly qualified voters approved the increase at the election held on June 17, 2008.  The increase in indebtedness will be used to undertake capital improvements to school buildings and facilities throughout the district. Staff has reviewed the petition and supporting documentation and recommend that the requested consent be granted.

Recommendation

              VOTED:  That the Board of Regents hereby gives consent to the issuance of bonds and/or bond anticipation notes by the Board of Education of the Olean City School District in an amount not to exceed $27,475,000 for capital improvements consisting of additions to, and reconstruction of school buildings and facilities throughout the district, and the issuance of such bonds and/or bond anticipation notes in excess of the constitutional debt limit of said school district.

Timetable for Implementation

              Upon approval by the Board of Regents, the petition will be forwarded to the State Comptroller for final consideration.