§ 115C-530. Operational leases of school buildings and school facilities.
§ 115C‑530. Operational leases of school buildings and school facilities.
(a) Local boards of education may enter into operational leasesof real or personal property for use as school buildings or school facilities.Operational leases for terms of less than three years shall not be subject tothe approval of the board of county commissioners. Operational leases for termsof three years or longer, including periods that may be added to the originalterm through the exercise of options to renew or extend, are permitted if allof the following conditions are met:
(1) The budget resolution includes an appropriation authorizingthe current fiscal year's portion of the obligation.
(2) An unencumbered balance remains in the appropriationsufficient to pay in the current fiscal year the sums obligated by the leasefor the current fiscal year.
(3) The leases are approved by a resolution adopted by the boardof county commissioners. If an operational lease is approved by the board ofcounty commissioners, in each year the county commissioners shall appropriatesufficient funds to meet the amounts to be paid during the fiscal year underthe lease.
(4) Any construction, repair, or renovation of the property isin compliance with the requirements of G.S. 115C‑521(c) relating toenergy guidelines.
Forpurposes of this section, an operational lease is defined according togenerally accepted accounting principles.
(b) Local boards of education may enter into contracts for therepair or renovation of leased property if (i) the budget resolution includesan appropriation authorizing the obligation, (ii) an unencumbered balanceremains in the appropriation sufficient to pay in the current fiscal year thesums obligated by the transaction for the current fiscal year, and (iii) therepair or renovation is in compliance with the requirements of G.S. 115C‑521(c)relating to energy guidelines. Contracts for renovation that are subject to thebidding requirements of G.S. 143‑129(a) and which do not constitutecontinuing contracts for capital outlay must be approved by the board of countycommissioners.
(c) Operational leases and contracts entered into under thissection are subject to approval by the Local Government Commission underArticle 8 of Chapter 159 of the General Statutes if they meet the standards setout in G.S. 159‑148(a)(1), 159‑148(a)(2), and 159‑148(a)(3).For purposes of determining whether the standards set out in G.S. 159‑148(a)(3)have been met, only the five hundred thousand dollar ($500,000) threshold shallapply. (1997‑236, s. 2.)