DC - LRSD Board Policy

Published by jackbgarvey on Tue, 04/01/2014 - 16:43




Taxing and Borrowing Authority/Limitations  
The District's taxing authority is established by Arkansas State law.
The Board is permitted, by law, to borrow money in anticipation of collection of the taxes 
for the purpose of securing funds for District operations or for the payment of previous 
loans. Issuance of all tax anticipation notes requires Board approval.
•  Short-term Loans: Due to the timing of state property tax collections or other 
   circumstances, it may be necessary for the district to obtain short-term loans. The
   maximum amount of the loan would be in accordance with state law. Such loans will be 
   approved by the Board. 
•  Loans Between District Funds: The Board delegates the authority to make loans 
   between district funds to the Chief Financial Officer. Such transfers may be made from 
   property taxes, special taxes and other revenue from local and State sources, but may not 
   be made from funds received from federal funds or obtained by the sale of general 
   obligation bonds. 
•  Debt Limitation: The District will have a limit of bonded indebtedness as stipulated 
   in state law. 
Bonding and Debt Service
It will be the policy of the District to retain a professional financial consultant to assist in the 
long-range financial programs for the District. 
Sale of Bonds
The Board may issue bonds for capital needs as defined and limited by the legal 
provisions of the statutes of the State of Arkansas. 
Post-Issuance Tax Compliance
The District will develop and maintain a procedural manual that demonstrates compliance 
with all tax laws and regulations related to the administration of bond proceeds. The person 
with primary responsibility for monitoring post-issuance compliance for the District is the 
Chief Financial Officer or designee. 
Revised: March 19, 2009
Adopted: March 24, 2000 
Legal References: A.C.A. 6-20-1201 through 6-20-1228 
Cross References: Post-Issuance Compliance Procedural Manual