While there is no fancy ball drop or confetti to ring in the new fiscal year, many school administrators are diligently preparing for their July annual (reorganization) meeting. Many have asked us about board actions required or typically taken at the first meeting of the new fiscal year, so we have prepared a short list of frequently-asked questions for your reference.
Designating a Bank
SDCL 13-8-10 requires boards of education to designate the district’s depository (bank) or depositories. Specifically, SDCL 13-16-5 states that the board shall “by resolution duly adopted at any annual, regular, or special meeting designate any bank or banks within the state as depositories for the funds or any part or parts of the funds of the district.” Prior to this meeting, it is wise for school administrators to review the depository information released by the Department of Legislative Audit to determine under-collateralized banks, if applicable. This information is accessible here.
Election of Officers
SDCL 13-8-10 also requires the Board to elect a president and vice president “from its membership” who will “serve until the next annual meeting.” We recommend reviewing your school board policy on the methodology for board officer voting.
What Do We Do About Ties?
A related question for the July meeting each year is how to deal with ties for officer elections. Election of the president and vice president is required by statute, but there is no statutory process for breaking the tie. We encourage you to review your policies to see if they include a method to break any officer election ties. Boards that have adopted KSB’s Policy 2002 likely have approved one of the methods for breaking ties so that you do not have dozens of failed motions or tie votes.
Tell Us About This Oath of Office
SDCL 13-8-14 requires newly elected members of the Board to take and subscribe “to an oath or affirmation to support the laws and Constitution of the United States and the State of South Dakota and to faithfully perform the duties of school board membership . . ..” Additionally, SDCL 13-8-15 provides that the oaths will be filed in the office of the business manager with the exception of the business manager’s oath which will be filed with the county auditor. The oaths only need to be completed once, upon the induction of the new board members and the hiring of a new business manager. The statute also empowers both business managers and board presidents to administer oaths.
What Else Is Legally Required at the July Annual Meeting?
The Board must also “designate the legal newspaper to be used for publishing all official notices and proceedings.”
Designating a Law Firm
Many boards designate the law firms(s) that they will work with during the next calendar year. There is no legal limitation on the number of law firms a board may designate so boards can authorize more than one firm. While such action is not technically required, it does clarify a school’s authority to work with legal counsel. A sample board agenda and motion for designating a law firm is available here.
We hope this information will help you prepare for your July meetings. If you have any questions about your July meetings, please don’t hesitate to reach out to us at ksb@ksbschoollaw.com or (402) 804-8000.