Meeting of the Board of Regents | June 2007

SUMMARY

Issue for Action (Consent Agenda)

              Should the Regents consent to allow the Norwich 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-VESID Committee at its June meeting.

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 Norwich City School District seeking consent of the Board of Regents to an increase in the indebtedness of the Norwich 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 Norwich.  The documentation supporting the petition verifies that more than 60 percent of duly qualified voters approved the increase at a special election held on March 14, 2006. The proposition did not however contain the statement required by the Local Finance law.  Chapter 20 of the Laws of 2007 legalized the action and deemed that the proposition contained the required statement. The increase in indebtedness will be used to undertake the alteration, reconstruction and additions to various school district buildings. Staff has reviewed the petition and supporting documentation and recommends 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 Norwich City School District in an amount not to exceed $34,100,000 for school building additions and reconstruction 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.