13-16-6 Definition and use of capital outlay fund--Levy required.
Definition and use of capital outlay fund--Levy required.
The capital outlay fund
of the school district is a fund provided by law to meet expenditures which result in the acquisition
or lease of or additions to real property, plant, or equipment. Such an expenditure shall be for land,
existing facilities, improvement of grounds, construction of facilities, additions to facilities,
remodeling of facilities, or for the purchase or lease of equipment. It may also be used for installment
or lease-purchase payments for the purchase of real property, plant, or equipment, which have a
contracted terminal date not exceeding twenty years from the date of the installment contract or
lease-purchase and for the payment of the principal of and interest on capital outlay certificates
issued pursuant to § 13-16-6.2.
Any purchase of one thousand dollars or less may be paid out of the general fund. The total
accumulated unpaid principal balances of such installment contracts and lease-purchase and the
outstanding principal amounts of such capital outlay certificates may not exceed three percent of the
taxable valuation. The school district shall provide a sufficient levy each year under the provisions
of § 13-16-7 to meet the annual installment contract, lease-purchase, and capital outlay certificate
payments, including interest.
A school district which contracts its student transportation may expend from the capital outlay
fund an amount not to exceed fifteen percent of the contract amount. In addition, a school district
which reimburses for mileage instead of providing transportation pursuant to § 13-30-3, may use the
capital outlay fund to pay for fifteen percent of its mileage reimbursement costs.
The capital outlay fund may be used to purchase textbooks and instructional software.
The capital outlay fund may be used to purchase warranties on capital assets if the warranties do
not include supplies.
During the period of time beginning on July 1, 2009, and ending on June 30, 2018, any school
district may make payments from its capital outlay fund for the purchase of property insurance and
casualty insurance, for payments for energy costs and the cost of utilities, and for motor fuel or for
any portion of a contract providing transportation to students or for any mileage reimbursements.
However, the total amount that a school district expends from its capital outlay fund for these
expenses may not exceed forty-five percent of the total tax revenues deposited in that fund during
the current school fiscal year, and for any school district with a current tax levy for the capital outlay
fund that is greater than its tax levy for the capital outlay fund in school fiscal year 2008, the total
amount expended from the capital outlay fund for these expenses may not exceed forty-five percent
of the total tax revenues that would have been deposited in that fund during the current school fiscal
year if the tax levy for the capital outlay fund had not been increased since 2008.
Source: SL 1947, ch 80; SL 1953, ch 56; SL 1955, ch 41, ch 10, § 3; SDC Supp 1960, § 15.2203;
SL 1970, ch 100, § 1; SL 1973, ch 91, § 1; SL 1975, ch 128, § 102; SL 1978, ch 109, § 1; SL 1988,
ch 138, § 1; SL 1989, ch 146, § 3; SL 1996, ch 111; SL 1997, ch 91, § 1; SL 2001, ch 72, § 1; SL
2001, ch 80, § 1; SL 2002, ch 85, § 1; SL 2006, ch 79, § 1; SL 2009, ch 82, § 1; SL 2011, ch 93, § 1;
SL 2013, ch 75, § 1.