Temporary Borrowing by School Board
The school board of any common, union high school or unified school district may borrow in the following manner. See Wis. Stats. 67.12(8) for complete details.
Meet Immediate Expenses
After the tax for operation and maintenance of the schools for the current school year has been voted, borrow money as needed to meet the immediate expenses of operating and maintaining the public instruction in the school district during the current school year. No such loan may extend beyond November 1 of the following school year.
July Through October
In June prior to voting an annual tax for the operation and maintenance of the schools for the subsequent school year, and in July and August prior to voting an annual tax for the operation and maintenance of the schools for the current school year, borrow money as needed to meet the immediate expenses of operating and maintaining the public instruction in the school district from July 1 to the last working day in October.
The school board may borrow money under this subdivision only upon a recorded resolution adopted by a two−thirds vote of its members. The resolution shall levy an irrepealable tax sufficient in amount to pay the principal of the loan and the interest thereon as they become due and payable.
If the borrowing occurs in June, the loan shall be repaid on or before November 1 of the second school year commencing after the date of the loan. If the borrowing occurs in July or August, the loan shall be repaid on or before November 1 of the school year commencing after the date of the loan.
The total amount to be borrowed may not exceed one−half of the estimated receipts for the operation and maintenance of the school district for the school year in which the borrowing occurs, as certified by the school district clerk.
To evidence a loan, the school board shall deliver to the lender its tax and revenue anticipation promissory note or notes or its school order. Each note and each order shall be executed as provided in s. 67.08(1) and may be registered under s. 67.09. Each note or order, when paid, shall be receipted and returned to the school district treasurer.
Temporary School District Loan Against Revenues (regarded as paid debt)
Whenever a school district shall have become entitled to state aids, tuition revenues or taxes levied, the district may pledge or assign all or portions of these revenues due but not yet paid as security for the repayment of loans required for operating purposes. Short term indebtedness secured by such assignment shall be construed as a paid or satisfied debt in reporting or computing the outstanding debt of the school district.