THE STATE EDUCATION DEPARTMENT / THE UNIVERSITY OF THE STATE OF NEW YORK / ALBANY, NY 12234

 

TO:	EMSC-VESID Committee
FROM:	James A. Kadamus
SUBJECT:	Petition of the Fonda-Fultonville Central School District for Consent to Exceed the Constitutional Debt Limit
DATE:	June 1, 2005
STRATEGIC GOAL:	Goal 2
AUTHORIZATION(S):

 

Summary

 

Issue for Decision

 

          Should the Regents consent to allow the Fonda-Fultonville Central 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 EMSC-VESID Committee on June 20, 2005 for discussion and action.  It will then come before the full Board for final action on June 21, 2005.

 

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 EMSC-VESID Committee has discussed and approved similar requests in the past from school districts to exceed their debt limit.

 

 

 

Background Information

 

          The Department received a petition from the Board of Education of the Fonda Fultonville Central School District seeking consent of the Board of Regents to an increase in the indebtedness of the 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 Fonda-Fultonville Central School District lies within the City of Johnstown.  The documentation supporting the petition verifies that more than 60 percent of duly qualified voters approved the increase at the annual election held on May 17, 2005.  The increase in indebtedness will be used to undertake the reconstruction of the elementary school, including associated furnishings, equipment and machinery.  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 Fonda-Fultonville Central School District in an amount not to exceed $2,500,000 to reconstruct the elementary school and to purchase furnishings, equipment and machinery for said building; 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

 

          The petition with the consent of the Board of Regents will be immediately forwarded to the State Comptroller for final consideration.