§ 22-45-103 — Funds

Colorado § 22-45-103

• Jurisdiction: Colorado
• Title 22: Education
• Art.: Accounting and Reporting

Text

(1) The following funds are created for each school
district for purposes specified in this article 45:

(a) General fund. (I) All revenues, except those revenues attributable to the
bond redemption fund, the capital reserve fund, the special building and technology
fund, a fund created solely for the management of risk-related activities, and any
other fund authorized by this section or by the state board of education, as provided
in subsection (2) of this section, shall be accounted for in the general fund. Any
lawful expenditure of the school district, including any expenditure of a nature that
could be made from any fund, may be made from the general fund. All expenditures
from the general fund shall be recorded therein.

(II) Moneys allocated pursuant to the provisions of section 22-54-105 (1) shall
be recorded in the instructional supplies and materials account, the instructional
capital outlay account, and the other instructional purposes account in the general
fund. Expenditures from the instructional supplies and materials account shall be
limited to instructional supplies and materials, expenditures from the instructional
capital outlay account shall be limited to instructional capital outlay, and
expenditures from the other instructional purposes account shall be limited to
other instructional purposes. Moneys in such accounts may not be expended for
any other purpose. Moneys may be transferred among the three accounts but may
not be transferred to any other account in the general fund or to any other fund of
the school district. Any moneys in such accounts which are not projected to be
expended during a budget year shall be budgeted for the purposes set forth in this
subparagraph (II) in the next budget year. Nothing in this subparagraph (II) shall be
construed to require that interest on moneys in such accounts be specifically
allocated to such accounts.

(III) Repealed.

(IV) Moneys collected pursuant to section 22-32-109.8 (9) shall be credited
to the fingerprint processing account. Moneys in said account shall be used for the
purposes set forth in section 22-32-109.8 and may not be expended by the district
for any other purpose; however, moneys in said account shall not be used for the
purposes of section 22-32-109.8 (6). Any moneys in said account which are not
expended during a budget year shall be carried forward and budgeted for the
purposes set forth in section 22-32-109.8 in the next budget year.

(V) The revenues from a tax levied pursuant to section 22-40-109 shall be
credited to the school facilities account. Moneys in said account shall be used for
the purposes set forth in section 22-40-109 and may not be expended by the
district for any other purpose. Any moneys remaining in the account at the end of
any fiscal year shall remain in the account and may be budgeted in the next fiscal
year.

(VI) Repealed.

(b) Bond redemption fund. (I) The revenues from a tax levy for the purpose
of satisfying bonded indebtedness obligations, both principal and interest, shall be
recorded in the bond redemption fund, which shall be administered by at least one
third-party custodian designated by the school district as provided in subparagraph
(V) of this paragraph (b), unless the school district meets one of the exceptions
specified in subparagraph (VI) or (VII) of this paragraph (b). The bond redemption
fund may include more than one subsidiary account for which a separate tax levy is
made to satisfy the obligations of bonded indebtedness, including a separate tax
levy to satisfy the obligations of bonded indebtedness incurred by a former school
district. The revenues from each separate tax levy shall be held in trust for the
purpose of satisfying the obligations of the bonded indebtedness for which the tax
levy was made; except that revenues, if any, remaining to the credit of a separate
subsidiary account after satisfaction of all such obligations of that subsidiary
account may be transferred to another subsidiary account in the same fund.

(II) The revenues from a tax levy for the purpose of making payments for
which the district is obligated under an installment purchase agreement or under a
lease or rental agreement having a term of more than one year, which has been
approved at an election pursuant to section 22-32-127 (2), for the purpose of
obtaining the use of real property or equipment for school sites, buildings, or
structures or for any school purpose authorized by law shall also be recorded in the
bond redemption fund. Subsidiary accounts may be established if separate tax
levies are made for different installment purchase agreements, or for different
lease or rental agreements, and the revenues in such accounts may be expended
and treated in the same manner as revenues from a tax levy to satisfy bonded
indebtedness obligations.

(III) Nothing in subparagraph (II) of this paragraph (b) or in section 22-32-127
shall be construed to authorize a school district to make any levy for its bond
redemption fund, or to use any moneys in its bond redemption fund, to make
payments with regard to any installment purchase agreement or lease or rental
agreement with an option to purchase which has not been approved at an election.

(IV) Moneys in the bond redemption fund shall be used only for the payment
of principal and interest on obligations of the school district having a term greater
than one year and approved at an election, which obligations constitute an
indebtedness of the school district. Whenever the issuance of refunding bonds or
other refunding obligations of the district results in moneys on deposit in the bond
redemption fund which are not needed to satisfy the principal and interest
obligations of the district as they become due, such moneys shall be used to reduce
the levy for the bond redemption fund in future years or to pay any then existing
obligations of the district payable from the bond redemption fund at a date earlier
than they become due.

(V) Except as otherwise provided in subparagraph (VI) or (VII) of this
paragraph (b), on or before July 1, 2003, each school district shall select at least one
commercial bank or depository trust company that has full trust powers, is located
within the state of Colorado, and is a member of the federal deposit insurance
corporation to act as a third-party custodian to administer the school district's bond
redemption fund. A school district may select multiple third-party custodians to
administer the district's bond redemption fund, so long as each custodian selected
meets the requirements for a custodian specified in this subparagraph (V). The
custodian shall be responsible for making payments from the bond redemption
fund as provided by law. The custodian, with the agreement of the school district,
may withdraw any or all of the moneys in the bond redemption fund that are
temporarily not needed to satisfy the school district's obligations, for purposes of
depositing or investing the moneys in any investments permitted by law.

(VI) A school district is not required to designate a third-party custodian to
administer the school district's bond redemption fund if the county treasurer keeps
the funds and accounts of the school district as provided in section 22-40-104. A
school district is not required to designate a third-party custodian to administer any
portion of the school district's bond redemption fund that consists of revenues
received from bonds or other obligations for which the school district has given
notice to the state treasurer that it will not accept payment by the state treasurer
on behalf of the school district as provided in section 22-41-110 (1)(a).

(VII) A school district is not required to select a commercial bank or
depository trust company that has full trust powers to administer the school
district's bond redemption fund if the school district places the funds in an escrow
account with a financial institution eligible to receive public deposits, pursuant to
escrow instructions which are acceptable to the state treasurer. At a minimum, the
escrow instructions shall include provisions prohibiting payment or transfer of the
funds to the school district without the state treasurer's prior written consent.

(c) Capital reserve fund. (I) Moneys allocated pursuant to the provisions of
section 22-54-105 (2) shall be transferred from the general fund and recorded in
the capital reserve fund along with the revenues received pursuant to section 39-5-132, C.R.S. Such revenues may be supplemented by gifts, grants, and donations.
Unencumbered moneys in the fund may be transferred to a fund or an account
within the general fund established in accordance with generally accepted
accounting principles solely for the management of risk-related activities as
identified in section 24-10-115, C.R.S., and article 13 of title 29, C.R.S., by resolution
of the board of education when such transfer is deemed necessary by the board;
except that a local board of education may, in its discretion, transfer any
unrestricted moneys into or out of the capital reserve fund in the 2009-10 budget
year or any budget year thereafter. Nothing in this subparagraph (I) shall be
construed to prohibit a local board of education from transferring unrestricted
moneys from the general fund or any other fund to the capital reserve fund in the
2009-10 budget year or any budget year thereafter. Except as provided in
subparagraph (V) of this paragraph (c), expenditures from the fund shall be limited
to long-range capital outlay expenditures and shall be made only for the following
purposes:

(A) Any acquisition of land, improvements, construction of structures or
addition to existing structures, and acquisition of equipment and furnishings;

(B) and (C) (Deleted by amendment, L. 2000, p. 520, � 5, effective August 2,
2000.)

(D) Alterations and improvements to existing structures;

(E) Acquisition of a school vehicle, as defined in section 42-1-102 (88.5),
C.R.S., or other equipment, except equipment specified in sub-subparagraph (H) of
this subparagraph (I);

(F) Any installment purchase agreements or lease agreements with an
option to purchase for a period not to exceed twenty years and any lease
agreement without the option to purchase entered into by a school district or a
charter school;

(G) Any software licensing agreement;

(H) Acquisition of computer equipment.

(II) Expenditures from the fund, other than for installment purchase
agreements with an option to purchase, as provided in subparagraph (II.5) of this
paragraph (c), shall be authorized by a resolution adopted by the board of education
of a school district at any regular or special meeting of the board. The resolution
shall specifically set forth the purpose of the expenditure, the estimated total cost
of the project, the location of the structure to be constructed, added to, altered, or
repaired, a description of any school vehicles or equipment to be purchased, and
where such equipment will be installed.

(II.5) A board of education may enter into an installment purchase
agreement or lease agreement with option to purchase for a period exceeding one
year and not to exceed twenty years for expenditures from the fund if the
agreement is first approved by a majority of the eligible electors of the district
voting on the question at an election held pursuant to this subparagraph (II.5). The
board of education may submit to the eligible electors of the district the question of
whether to enter into such an agreement at any general election, regular biennial
school election, or special election called for such purpose. The secretary of the
board of education shall be the designated election official and shall conduct the
election pursuant to articles 1 to 13 of title 1, C.R.S. Any special election called
pursuant to this subparagraph (II.5) shall be held on the first Tuesday after the first
Monday in February, May, October, November, or December. The question of
whether to enter into an installment agreement or lease agreement with option to
purchase may be submitted or resubmitted after the same, or after any other such
question, has previously been rejected at an election held pursuant to this
subparagraph (II.5), but no such question shall be submitted or resubmitted at any
election held less than one hundred twenty days after a previous submission of
such question, and the board of education of any school district shall not submit
any question of entering into such an agreement at more than two elections within
any twelve-month period. The board of education of a school district may enter into
an installment purchase agreement or lease agreement with option to purchase for
a term not to exceed twenty years for the purposes provided for in sub-subparagraph (F) of subparagraph (I) of this paragraph (c). When authorized by the
election as provided in this subparagraph (II.5), the agreement shall be valid,
binding, and enforceable between the parties to the agreement. The provisions of
this subparagraph (II.5) shall have no application to any installment purchase
agreement or lease agreement with option to purchase, even though the term
thereof may be greater than one year, if the district's obligation to make payments
thereunder is expressly subject to the making of annual appropriations therefor in
accordance with law. This subparagraph (II.5) shall have no application to any lease
agreement with option to purchase for a period of one year or less, including lease
agreements consisting of a series of one-year terms renewable at the option of the
district.

(III) Any balance remaining upon the completion of any authorized project
may be encumbered for future projects which are authorized as provided in this
paragraph (c).

(IV) The revenues from a tax levied pursuant to section 22-40-110 shall be
credited to the capital reserve fund. Moneys in said fund shall be used for the
purposes set forth in section 22-40-110 and may not be expended by the district for
any other purpose. Any moneys remaining in the fund at the end of any fiscal year
shall remain in the fund and may be budgeted in the next fiscal year.

(V) Upon receipt from a school district of an accounting of any expenditures
made or moneys encumbered for the purchase of new textbooks in the 2002-03
budget year, including copies of invoices, contracts, or other documentation of the
amount and purpose of the expenditures or encumbrances, the department of
education may allow the school district to expend moneys from the district's capital
reserve fund during the 2002-03 and 2003-04 budget years to offset the
elimination of additional moneys that the district would have received in the 2002-03 budget year pursuant to section 22-54-105 (1)(b)(III) to purchase new textbooks;
except that any expenditure of moneys from the fund made pursuant to this
subparagraph (V) shall be limited to the amount of moneys the district has
expended or encumbered as of January 31, 2003, for the purchase of new
textbooks.

(d) Special building and technology fund. (I) The revenues from a tax levy
for the purpose of acquiring, maintaining, or constructing schools or for the
purchase and installation of instructional and informational technology shall be
recorded in the special building and technology fund to remain in the custody of the
treasurer of any district that has elected under law to withdraw its funds from the
custody of the county treasurer or, in any other case, to the treasurer of the county
in which the district is located and may be invested or deposited by such district or
county treasurer pursuant to the provisions of sections 24-75-601.1, 24-75-602, and
24-75-603, C.R.S. Expenditures from the fund shall be limited to acquiring land;
acquiring or constructing structures; maintaining structures to enhance their
function, protect their value, and extend their economic life; and purchasing and
installing instructional and informational technology, including expenditures for
software and staff training related to the new technology.

(II) Expenditures from the fund shall be authorized by a resolution adopted
by the board of education of a school district at any regular or special meeting of
the board. The resolution shall specifically set forth the purpose of the expenditure,
the estimated total cost of the project, and the location of the land to be acquired,
the structure to be acquired or constructed, or the nature of the building security
technology or instructional and informational technology to be acquired. Such
resolution shall constitute authorization to the treasurer of any district that has
elected under law to withdraw its funds from the custody of the county treasurer
or, in any other case, to the treasurer of the county in which the district is located
for application of the funds under his or her control to the specified expenditure.

(III) Any balance remaining upon the completion of any authorized project
may be encumbered for future projects that are authorized as provided in this
paragraph (d).

(IV) Any moneys in the fund that have not been authorized for expenditure
within three years after being recorded in the fund shall revert to the capital
reserve fund.

(e) Risk management reserves. Moneys allocated pursuant to the provisions
of section 22-54-105 (2) shall be recorded in a fund or in an account within the
general fund established in accordance with generally accepted accounting
principles solely for the management of risk-related activities as identified in
section 24-10-115, C.R.S., and article 13 of title 29, C.R.S. Unencumbered moneys in
such fund or account may be transferred to the capital reserve fund or to any other
fund or account established solely for the management of risk-related activities by
resolution of the board of education when such transfer is deemed necessary by
the board; except that a local board of education may, in its discretion, transfer any
unrestricted moneys into or out of such fund or account in the 2009-10 budget year
or any budget year thereafter. Expenditures from any such fund or account shall be
limited to the purposes set forth in section 24-10-115, C.R.S., and article 13 of title
29, C.R.S. Nothing in this paragraph (e) shall be construed to prohibit a local board
of education from transferring unrestricted moneys from the general fund or any
other fund to a fund or account for the management of risk-related activities in the
2009-10 budget year or any budget year thereafter.

(f) Transportation fund. The revenues from a tax levied or fee imposed for
the purpose of paying excess transportation costs, as authorized pursuant to the
provisions of section 22-40-102 (1.7) or the provisions of section 22-32-113 (5), and
revenues received from the state pursuant to the provisions of section 22-51-102 (4)
shall be deposited in the transportation fund of the district. Expenditures from the
fund shall be limited to payment of transportation costs as authorized in the budget
of the district. Any moneys remaining in the fund at the end of any fiscal year shall
remain in the fund and shall be used to reduce the levy for transportation costs in
future years.

(g) Repealed.

(h) Full-day kindergarten fund. (I) The revenues from a tax levied pursuant
to section 22-54-108.5 for the purpose of paying excess full-day kindergarten
program costs shall be deposited in the full-day kindergarten fund of the district.
Expenditures from the fund shall be limited to payment of excess full-day
kindergarten program costs as authorized in the budget of the district. Any moneys
remaining in the fund at the end of any fiscal year shall remain in the fund and shall
be used to reduce the levy for excess full-day kindergarten program costs in future
years.

(II) The revenues from a tax levied pursuant to section 22-54-108.5 to meet
the capital construction needs associated with a district's full-day kindergarten
program shall be credited to the capital construction account in the district's full-day kindergarten fund. Moneys in the account shall be used to meet the district's
capital construction needs associated with the full-day kindergarten program and
may not be expended by the district for any other purpose. Any moneys remaining
in the account at the end of any fiscal year shall remain in the account and may be
budgeted in the next fiscal year.

(i) Reserved.

(j) Supplemental capital construction, technology, and maintenance fund. The revenue from a tax levied pursuant to section 22-54-108.7 for the purpose of
providing ongoing cash funding for the capital construction, new technology,
existing technology upgrade, and maintenance needs of a school district, and no
other money other than interest and income credited to the fund pursuant to this
paragraph (j), shall be deposited in the supplemental capital construction,
technology, and maintenance fund of the district. The district may expend money
from the fund only for the purpose of providing cash funding for capital
construction, new technology, existing technology upgrade, and maintenance
needs of the district and may not pledge any money in the fund for the repayment
of any existing or new borrowing. All interest and income derived from the deposit
and investment of money in the supplemental capital construction, technology, and
maintenance fund shall be credited to the fund.

(k) Repealed.

(2) The state board of education may authorize by regulation additional
funds not provided for in this section, together with proper accounting procedures
for the same.

(3) Each school district shall ensure that the district holds unrestricted
general fund or cash fund emergency reserves in the amount required under the
provisions of section 20 (5) of article X of the state constitution; except that a
district may designate property owned by the district as all or a portion of the
required reserve in accordance with section 22-44-105 (1)(c.5).

Legislative History

Source: L. 64: p. 628, � 3. C.R.S. 1963: � 123-33-3. L. 65: pp. 1025, 1026, �� 2, 3. L. 73: pp. 1276, 1292, �� 3, 1. L. 77: (1)(c)(I)(F) and (1)(c)(II.5) added and (1)(c)(II) amended, p. 1051, �� 4, 5, effective June 10. L. 83: (1)(a) amended and (1)(d) added, p. 758, � 3, effective April 21; (1)(b)(II), IP(1)(c)(I), (1)(c)(I)(E), (1)(c)(I)(F), and (1)(c)(II.5) amended, p. 751, � 6, effective July 1. L. 85: (1)(b)(II) amended and (1)(b)(III) and (1)(b)(IV) added, p. 732, � 1, effective May 31; IP(1)(c)(I), (1)(c)(I)(A), and (1)(c)(I)(D) amended, p. 1226, effective January 1, 1986. L. 86: (1)(c)(II.5) amended, p. 813, � 5, effective July 1. L. 87: (1)(c)(II.5) amended, p. 317, � 55, effective July 1. L. 88: (1)(a), IP(1)(c)(I), (1)(c)(I)(E), and (1)(c)(II.5) amended and (1)(e) added, p. 815, � 23, effective May 24. L. 89: (1)(a)(II), IP(1)(c)(I), and (1)(e) amended and (1)(a)(III) added, pp. 966, 971, �� 15, 21, 14, effective June 7. L. 90: (1)(a)(III)(A) amended, p. 1083, � 43, effective May 31; (1)(a)(IV) added, p. 1115, � 4, effective June 7. L. 91: (1)(f) added, p. 540, � 6, effective May 1. L. 92: (1)(a)(III)(A) amended and (1)(a)(V) added, p. 542, � 16, effective May 28; (1)(a)(II) amended, p. 520, � 2, effective July 1; (1)(c)(II.5) amended, p. 840, � 38, effective January 1, 1993. L. 93: (1)(a)(III) repealed and IP(1)(c)(I) and (1)(e) amended, pp. 891, 880, �� 16, 3, effective May 6. L. 94: (1)(a)(II), IP(1)(c)(I), and (1)(e) amended, p. 819, � 39, effective April 27. L. 95: (1)(c)(I)(E) amended, p. 610, � 10, effective May 22; (1)(d)(I) amended, p. 1101, � 29, effective May 31. L. 97: (1)(a)(I), (1)(d)(I), and (1)(d)(II) amended, p. 74, � 1, effective March 24; (1)(a)(I), IP(1)(c)(I), and (1)(e) amended and (1)(a)(VI) added, pp. 584, 588, �� 11, 22, effective April 30. L. 98: (1)(a)(VI) and (1)(c)(I)(E) amended, pp. 973, 974, �� 18, 19, effective May 27. L. 2000: (1)(d)(I) and (1)(d)(II) amended, p. 254, � 1, effective March 31; (1)(c)(I)(A), (1)(c)(I)(B), (1)(c)(I)(C), and (1)(c)(I)(F) amended and (1)(c)(I)(G) added, p. 520, � 5, effective August 2; (1)(d) amended, p. 247, � 1, effective August 2. L. 2001: (1)(g) added, p. 558, � 2, effective May 23. L. 2002: (1)(c)(IV) added, p. 1746, � 19, effective June 7. L. 2003: IP(1)(c)(I) amended and (1)(c)(V) added, p. 516, � 4, effective March 5; (1)(b)(I) amended and (1)(b)(V) and (1)(b)(VI) added, p. 1295, � 1, effective April 22; (3) added, p. 1285, � 6, effective July 1. L. 2004: (1)(b)(I) and (1)(b)(V) amended and (1)(b)(VII) added, p. 424, � 1, effective August 4. L. 2006: (1)(c)(I)(E) and (1)(g) amended and (1)(c)(I)(H) added, pp. 676, 696, �� 16, 41, effective April 28. L. 2007: (1)(a)(I) amended and (1)(h) added, p. 37, � 2, effective March 7. L. 2008: (1)(g) repealed, p. 1228, � 44, effective May 22. L. 2009: (1)(c)(I)(D), (1)(c)(I)(E), (1)(c)(I)(G), (1)(c)(I)(H), and (3) amended, (SB 09-256), ch. 294, pp. 1560, 1561, �� 22, 23, effective May 21. L. 2010: (1)(c)(I)(E) and (1)(c)(II) amended, (HB 10-1232), ch. 163, p. 571, � 9, effective April 28; IP(1)(c)(I) and (1)(e) amended, (HB 10-1013), ch. 399, p. 1899, � 7, effective June 10. L. 2016: (1)(j) added, (HB 16-1354), ch. 166, p. 529, � 2, effective May 17; (1)(k) added, (HB 16-1422), ch. 351, p. 1432, � 7, effective June 10. L. 2017: IP(1) and (1)(k) amended, (SB 17-296), ch. 313, p. 1681, � 2, effective June 2. L. 2020: (1)(k) amended, (HB 20-1418), ch. 197, p. 953, � 36, effective June 30. L. 2021: (1)(k) amended, (SB 21-268), ch. 222, p. 1173, � 8, effective June 11. L. 2024: (1)(k)(III) added, (SB 24-188), ch. 235, p. 1471, � 2, effective May 23. L. 2025: (1)(k)(III) amended, (SB 25-113), ch. 2, p. 3, � 3, effective February 27.