Building Reserve Funds – Permissive Levies Montana Conference of Education Leadership (MCEL) October 17, 2018

Senate Bill 307 (2017 Legislative Session) Revised school funding law to address facilities New permissive levy in the Building Reserve Fund “School facility maintenance amount” $15,000* + ($100 X previous year’s ANB) Can levy up to 10 mills; supplement with other legally available funds if 10 mills isn’t enough Must spend on certain items in 2008 School Facility Condition Inventory report Eventual state subsidy (GTB) to support levy in future years

Max Annual Contribution School Facility Maintenance Amount: Max annual contribution amount from ALL sources $15,000* + (budget limit ANB x $100) Can permissively levy up to 10 mills; supplement with other legally available funds if 10 mills isn’t enough Examples: ANB Max Annual Contribution 100 $ 25,000 (100 x $100 + $15,000)* 500 $ 75,000 (500 x $100 + $15,000)* 750 $100,000 (750 x $100 + $15,000)* *$30,000 for a K-12 district

Remember to include in SB307 notice if you intend to levy Trustees must adopt and publish by March 31 Requires use of Project Reporter Codes in Building Reserve Fund Balance sheet accounts (including cash and fund balance), revenues, and expenditures all tracked separately Reconcile PRCs monthly! Recommend using OPI Fund 15 spreadsheet

Allowable Uses: Repairs categorized as ‘safety,’ ‘damage/wear out,’ or ‘codes and standards’ in 2008 Facility Condition Inventory, then: Updating FCI New projects designed to produce operational efficiencies such as: Utility savings Reduced future maintenance costs Improved utilization of staff Enhanced learning environments for students

Senate Bill 307 (2017 Legislative Session) 2008 School Facility Condition Inventory report Link to Home page: http://comdev.mt.gov/programs/qualityschools Find your district using drop down boxes Look for deficiency categories: 1 = safety 2= damage/wearout 3 = codes/standards MUST ADDRESS THESE ITEMS FIRST

Senate Bill 307 (2017 Legislative Session) 2008 School Facility Condition Inventory (FCI) Address deficiency categories 1, 2 and 3 Review and update the FCI by July 1, 2019 Trustees determine Scope and methods of the review Any experts needed for the review Certify completion of the update to OPI by October 31, 2019 and certify updates once every 5 years thereafter

Timeline: Date/Deadline Event March 1 OPI releases estimate of maximum state funding for ensuing year on preliminary budget data sheet ($0 for FY19) March 31 SB307 notice published, to include: Projects expected to be pursued Funding sources Funds & mills to be raised by levy August Budgets adopted, levies set Last working day in May State funding, if any will be distributed

IMPORTANT RESOURCES OPI Building Reserve Subfunds Guidance Senate Bill 307 (2017 regular session) MTSBA 2017 Legislative Session Resources (log in to mtsba.org to access SB307 Q&A)