SECTION 635:10-1-2. Application and approval to participate in public trust bond issue

  As outlined in 60 O. S. Supp. 2000, Section 177.2 and as last amended by Enrolled Senate Bill 902 during the second regular session of the 47th Legislature, public trusts are prohibited from issuing any bonds, notes, or any other evidence of indebtedness from which the proceeds would be used to purchase nonpayable warrants of any school district without the approval of the Oklahoma Commission on School and County Funds Management. As outlined in legislation, the Commission has been directed by the Legislature to allow school districts to request authorization to participate in such a program. The Commission will approve or reject each application submitted.

(1)   Purpose of Commission. The purpose of the Commission is clearly defined in law and was created to approve school districts requesting such authorization to participate in a bond issue by a public trust where the bond proceeds will be used to purchase nonpayable warrants of the school districts.

(2)   General requirements of the Commission.

(A)   The certifying authorities will provide sufficient information to support the recommendations made to the Commission for approval/disapproval of such requests by school districts for participation in such bond issue.

(B)   The certifying authorities will provide sufficient information to support the recommendations made to the Commission for approval/disapproval of such requests. The criteria and necessary financial information are detailed in Specific Requirements. However, for those requests which are disapproved, the certifying authorities will submit a rationale, with information available if requested, to support such recommendations.

(C)   Requests for authorization for participation in such program may include approval for general fund and building fund.

(D)   A request solely for participation in such program for the building fund will not be approved.

(E)   If a request is made for participation in a bond issue for the general fund and building fund and such request is approved for the general fund, but is denied for the building fund, disapproval will eliminate only the building fund participation.

(F)   If a request for participation is not approved, such district may appeal to the Commission. The appeal shall be made in writing and must include additional documentation and supporting evidence that a need exists for the program in the district.

(3)   Specific requirements of Commission.

(A)   The application is due on or before April 1.

(B)   The information to be included in the application process is:

(i)   Letter of Request for Participation

(ii)   Financial information for general fund and/or building fund:

(I)   For the borrowing year, cash flow projections of Revenues Collected on a monthly basis.

(II)   For the borrowing year, cash flow projections of Expenses Paid on a monthly basis.

(III)   For the borrowing year, Calculation of Cash-Flow Deficit.

(IV)   (Table 4 Optional) Assessed Valuation History and Tax Collection History for five preceding years, and Tax Collections for the Five Largest Taxpayers.

(V)   State Financial Assistance--Actual state aid receipts for prior school year, and projected state aid receipts for borrowing year; Historical Revenues and Expenses--Actual revenue and expenses for prior year, and actual/projected revenue and expenses for current year.

(VI)   Trend Analysis--Actual revenues and expenses for prior school year, actual projected revenues and expenses for current school year, projected revenues and expenses for borrowing year, with beginning and ending book balances.

(iii)   Other legal forms as required pursuant to 60 O.S. Supp. 2000, Section 177.2

(4)   Timelines for implementation.

(A)   December 1: Timeline that application forms will be available for school districts desiring to participate in such program.

(B)   April 1: Deadline for school districts to have application and letter of request for participation on file. Commission has the authority to extend the application deadline at its discretion.

[Source: Amended at 14 Ok Reg 2006, eff 5-27-97; Amended at 18 Ok Reg 1325, eff 5-11-01]