2006 Code of Virginia § 22.1-175.5 - Capital School Projects Fund

22.1-175.5. Capital School Projects Fund.

A. The governing body of any locality which is awarded a grant pursuant tothis chapter may authorize the local treasurer or fiscal officer, byordinance or resolution, to create a separate escrow account upon the booksof the locality, as described in this section. Upon the adoption of suchordinance or resolution, the treasurer of the locality shall place such grantawards into this account.

B. The escrow account shall be known as the "County/City/Town of____________ Capital School Projects Fund." All principal deposited to suchfund, together with all income from or attributable to the fund, shall beused solely for (i) construction, additions, renovations, includingretrofitting and enlarging public school buildings, infrastructure, includingtechnology infrastructure, and site acquisition for public school buildingsand facilities or (ii) debt service payments, or a portion thereof, for anysuch projects completed in the previous ten years if so designated. Nodisbursement from the fund may be made except upon specific appropriation bythe governing body in accordance with applicable law. If a localityestablishes such a fund and designates any portion of the funds depositedtherein to pay debt service for (i) any general obligation of the localityheld by the Virginia Public School Authority or (ii) any Literary Fund loan,the locality shall obtain an opinion of bond counsel that designation offunds to pay debt service on obligations described in clauses (i) and (ii)hereof does not adversely impact the tax-exempt status of such obligations.

C. All grant awards deposited in the fund, including all income from orattributable to such fund, shall be deemed public funds of the locality andshall be subject to all limitations upon deposit and investment provided bygeneral law, including, but not limited to, the Virginia Security for PublicDeposits Act ( 2.2-4400 et seq.). Income, dividends, distributions, andgrants accruing to the fund shall be retained in such fund and shall beexpended only in accordance with the terms of this section.

D. Nothing in this section shall be deemed or construed to authorize a schoolboard or school division to receive, hold or invest funds in its own name,nor to expend funds in the absence of a specific appropriation by thegoverning body of the locality in accordance with applicable law.

(1999, cc. 354, 391.)