The School Board believes it is prudent to minimize the amount of debt the District has outstanding at any point in time. By State law, school districts are afforded the ability to use up to three-quarters of their total capital outlay millage for payments due under lease-purchase agreements. Based on a maximum millage of 2.0 mills the legal limit would be 1.5 mills. In an effort to maintain a balance of minimal debt, with an ability to finance necessary capital projects, the Board deems it prudent, appropriate, and fiscally responsible to set a maximum debt service ratio limit, relative to the amount of capital outlay millage for payments due under lease-purchase agreements, equal to 1.0 mill for each fiscal year. Annually, as the budget is adopted, the Board shall review the existing level of debt service ratio.

Adopted 4/27/04