KRS § 157.440 — KY Code / Title XIII / Chapter 157 / Section 157.440
157.440 Levy of an equivalent tax rate -- Participation in Facilities Support Program -- District may exceed levy authorized by KRS 160.470
Status: in_force

157.440 Levy of an equivalent tax rate -- Participation in Facilities Support

Program -- District may exceed levy authorized by KRS 160.470.

(1) (a) Notwithstanding any statutory provisions to the contrary, effective for school

years beginning after July 1, 1990, the board of education of each school

district may levy an equivalent tax rate as defined in subsection (9)(a) of KRS

160.470 which will produce up to fifteen percent (15%) of those revenues

guaranteed by the program to support education excellence in Kentucky. The

levy for the 1990-91 school year shall be made no later than October 1, 1989,

and no later than October 1, 1990, for the 1991-92 school year, and by

October 1 of each odd-numbered year thereafter. Effective with the 1990-91

school year, revenue generated by this levy shall be equalized at one hundred

fifty percent (150%) of the statewide average per pupil assessment.

(b) To participate in the Facilities Support Program of Kentucky, the board of

education of each school district shall commit at least an equivalent tax rate of

five cents ($0.05) to debt service, new facilities, or major renovations of

existing school facilities, or the purchase of land if approved by the

commissioner of education as provided in KRS 157.420(4)(b). The five cents

($0.05) shall be in addition to the thirty cents ($0.30) required by KRS

160.470(9) and any levy pursuant to paragraph (a) of this subsection. The levy

shall be made no later than October 1 of each odd-numbered year. Eligibility

for equalization funds for the biennium shall be based on the district funds

committed to debt service on that date. The five cents ($0.05) shall be

equalized at one hundred fifty percent (150%) of the statewide average per

pupil assessment. The equalization funds shall be committed to debt service to

the greatest extent possible, but any excess equalization funds not needed for

debt service shall be deposited to a restricted building fund account. The

funds may be escrowed for future debt service or used to address categorical

priorities listed in the approved facilities plan pursuant to KRS 157.420.

(c) The board of education of each school district may contribute the levy

equivalent tax rate of five cents ($0.05) and equalization funds for energy

conservation measures under guaranteed energy savings contracts pursuant to

KRS 45A.345, 45A.352, and 45A.353. Use of these funds, as provided under

KRS 45A.353, 56.774, and 58.600 shall be based on the following guidelines:

1. Energy conservation measures shall include facility alteration;

2. Energy conservation measures shall be identified in the district's

approved facility plan pursuant to KRS 157.420;

3. The current facility systems are consuming excess maintenance and

operating costs;

4. The savings generated by the energy conservation measures are

guaranteed;

5. The levy equivalent tax rate of five cents ($0.05) and equalization funds

contributed to the energy conservation measures shall be defined as

capital cost avoidance as provided in KRS 45A.345(2) and shall be

subject to the restrictions on usage as specified in KRS 45A.352(9); and

6. The equipment that is replaced has exceeded its useful life as

determined by a life cycle cost analysis.

(d) The rate levied by a district board of education under the provisions of this

subsection shall not be subject to the public hearing provisions of KRS

160.470(7) or to the recall provisions of KRS 160.470(8).

(e) A school district which is at or above the equivalent tax rates permitted under

the provisions of the Kentucky Education Reform Act of 1990, 1990 Ky. Acts

ch. 476, shall not be required to levy an equivalent tax rate which is lower

than the rate levied during the 1989-90 school year.

(2) (a) A district may exceed the maximum provided by subsection (1) of KRS

160.470 provided that, upon request of the board of education of the district,

the county board of elections shall submit to the qualified voters of the

district, in the manner of submitting and voting as prescribed in paragraph (b)

of this subsection, the question whether a rate which would produce revenues

in excess of the maximum provided by subsection (1) of KRS 160.470 shall

be levied. The rate that may be levied under this section may produce revenue

up to no more than thirty percent (30%) of the revenue guaranteed by the

program to support education excellence in Kentucky plus the revenue

produced by the tax authorized by this section. Revenue produced by this levy

shall not be equalized with state funds. If a majority of those voting on the

question favor the increased rate, the tax levying authority shall, when the

next tax rate for the district is fixed, levy a rate not to exceed the rate

authorized by the voters.

(b) The election shall be held not less than fifteen (15) or more than thirty (30)

days from the time the request of the board is filed with the county clerk, and

reasonable notice of the election shall be given. The election shall be

conducted and carried out in the school district in all respects as required by

the general election laws and shall be held by the same officers as required by

the general election laws. The expense of the election shall be borne by the

school district.

(3) For the 1966 tax year and for all subsequent years for levies which were approved

prior to December 8, 1965, no district board of education shall levy a tax at a rate

under the provisions of this section which exceeds the compensating tax rate as

defined in KRS 132.010, except as provided in subsection (4) of this section and

except that a rate which has been approved by the voters under this section but

which was not levied by the district board of education in 1965 may be levied after

it has been reduced to the compensating tax rate as defined in KRS 132.010, and

except that in any school district where the rate levied in 1965 was less than the

maximum rate which had been approved by the voters, the compensating tax rate

shall be computed and may be levied as though the maximum approved rate had

been levied in 1965 and the amount of revenue which would have been produced

from such maximum levy had been derived therefrom.

(4) Notwithstanding the limitations contained in subsection (3) of this section, no tax

rate shall be set lower than that necessary to provide such funds as are required to

meet principal and interest payments on outstanding bonded indebtedness and

payments of rentals in connection with any outstanding school revenue bonds

issued under the provisions of KRS Chapter 162.

(5) The chief state school officer shall certify the compensating tax rate to the levying

authorities.