RESTRICTION OF INDEBTEDNESS

The Ocean Springs School District shall only issue bonds for the purposes authorized by law in an amount which, when added to all of its outstanding bonded indebtedness, shall not result in the imposition of an indebtedness for school purposes of more than fifteen percent of the assessed value of the taxable property within the District, according to the last completed assessment for taxation, regardless of whether any of the indebtedness shall have been incurred by the Ocean Springs School District or by another school district. ' 37-59-5 (1968)

EXCEEDING INDEBTEDNESS RESTRICTIONS

(1)    The Ocean Springs School District may issue bonds in an amount exceeding the limit of MS Code Section 37-59-5: if the total number of pupils enrolled at any one time during the school year shall have increased by at least twenty percent (20%) or an average of three hundred fifty (350) or more annually within the preceding five (5) years. The issuance of bonds for the purposes authorized by law in an amount which when added to all of its outstanding bonded indebtedness, shall not then result in the imposition on any of the property in the district of an indebtedness for school purposes of more than twenty-five percent (25%) of the assessed value of the taxable property within the district according to the last completed assessment for taxation.  

Any school district in which the total number of pupils enrolled at any one time during the school year shall have increased by at least ten percent (10%) within the preceding five (5) years shall not issue bonds for the purposes authorized by law in an amount which, when added to all of its then outstanding bonded indebtedness, shall result in the imposition on any of the property in such district of an indebtedness for school purposes of more than twenty percent (20%) of the assessed value of the taxable property within such district according to the then last completed assessment for taxation.

The pupil increase mentioned in the subsection above shall apply only to growth in pupil enrollment and shall not apply to pupil increases brought about by consolidation of school districts.

(2)    For the purpose of constructing, reconstructing, repairing, equipping, remodeling or enlarging school buildings and related facilities, as described in subsection (a) of Section 37-59-3, the issuance of bonds when added to all of its outstanding bonded indebtedness, shall not then result in the imposition on any of the property in the District of an indebtedness for such school purposes of more than twenty percent (20%) of the assessed value of the taxable property in the District, according to the last completed assessment for taxation, regardless of whether any of such indebtedness shall have been incurred by the Ocean Springs School District or by another school district or districts: 

    (a)    In the event of the damage to or destruction of any school building or school buildings, or related facilities of the Ocean Springs School District by fire, windstorm, flood or other providential and unforeseeable cause; or 

    (b)    In the event the District has lost its accreditation and the constructing, reconstructing, repairing, equipping, remodeling or enlarging of such school buildings and related facilities is necessary for the restoration of such accreditation.

REDUCED OR INTEREST-FREE DEBT PURSUANT TO FEDERAL LAW

Notwithstanding any law or any provision of any law to the contrary, the following additional and supplemental powers and authorizations are hereby granted to the Ocean Springs School District in connection with the issuance of any debt, as defined below.

    (a)     For purposes of this act, "debt" means any note, bond, lease or other evidence of indebtedness, that the district is authorized to issue under any provision of law.

    (b)    By resolution of the School Board, the Ocean Springs School District may do all things regarding the form, payment structure, purchase price and terms of debt which may be helpful in qualifying the debt for reduced or interest-free treatment under federal law and to assure that such debt will be readily acceptable in the municipal bond market, provided it is not inconsistent with the Constitution of the State.  Nothing in this act shall be construed as allowing the school district to exceed the final maturity term or exceed any debt limitation provided in the applicable state law authorizing the debt.

    (c)    This act shall be construed to be supplemental and additional to any powers conferred by other laws on the Districts and not in derogation of any powers not existing.  The act is remedial in nature and shall be liberally construed.  This act shall not grant any extra authority to the School Board to issue debt in any amount exceeding statutory limitations on assessed value of taxable property within the District or the statutory limitations on debt maturities, and shall not grant any extra authority to impose, levy or collect a tax which is not otherwise expressly provided for.  ' 37-59-301 (2004)

LEGAL REF.: MS CODE as cited

ADOPTED:    12/13/2005 
                       08/11/2009