The Kimberly Board of Trustees may enter into lease-purchase agreements for goods, equipment, busses or portable classrooms, provided the written agreement meets the following requirements:
- The annual lease payments shall reflect reasonable compensation for use;
- No penalty shall be imposed on the district for proper cancellation of the lease;
- The right of the district to exercise the option to purchase shall be at the sole discretion of the district;
- The cost to the district to exercise the option to purchase shall be clearly stated in the lease. The cost shall be indicated on a yearly basis over the life of the lease including a cost at the end of the lease; and
- The cost of purchase shall not exceed the reasonable value of goods, equipment, busses or portable classrooms as of the time the option to purchase are exercised.
LEGAL REFERENCE:
Idaho Code Sections 33-506(A)
Idaho Constitution, Article 8, Section 3
POLICY HISTORY:
Adopted: September 16, 2004
Revised: