NO. M-16.  AN ACT RELATING TO THE CHARTER OF THE CITY OF RUTLAND.

(H.774)

It is hereby enacted by the General Assembly of the State of Vermont:

Sec. 1.  APPROVAL OF CHARTER AMENDMENT

The charter of the City of Rutland is amended as provided in this act.  Proposals of amendment were approved by the voters on March 2, 2004.

Sec. 2.  24 App. V.S.A. chapter 9, subsection 8.5(I) is added to read:

(I)  Taxes required for educational or school purposes, provided there is compliance with the limitations set forth in section 34.2 of this charter.

Sec. 3.  24 App. V.S.A. chapter 9, section 34.2 is added to read:

§ 34.2.  SCHOOL FINANCING

(a)  The Rutland City voters authorize the Rutland School commissioners to adopt annual general fund budgets without further voter approval, provided that the actual homestead tax rate in a year does not exceed $0.50 more than the adjusted equalized homestead rate as established by state officials pursuant to applicable law.

(b)  “Actual homestead rate” means the tax rate that is charged Rutland City homestead property owners to pay for education costs for the Rutland City school system.  “Adjusted equalized homestead tax rate” is the homestead tax rate as set by the general assembly, adjusted for the common level of appraisal as determined by state officials.

(c)  Any bonded indebtedness approved by the voters after January 1, 2004, shall not be considered as part of the annual general fund budget referred to in subsection (a) of this section.

Approved:  May 20, 2004