Under certain circumstances school districts in the State of Michigan may legally borrow monies into their General Operating Fund. The Board of Education authorizes such borrowing by this District whenever tax revenue(s) due to the District are not received rapidly enough to offset current operating expenses and/or whenever the net result of the borrowing is a financial gain to the District and/or has an ultimate, indirect effect of lessening the tax millage levy required by the District.

Under certain circumstances school districts may legally issue bonds, or participate in the issuing of bonds with other school districts, in order to borrow monies for large capital expenditures, i.e. new buildings, remodeling and additions to buildings, athletic fields, etc. Borrowing in this manner requires approval by a majority vote of the District voters voting in a legal election. This District shall not borrow money by this means without approval of the electorate of the specific dollar amount to be borrowed.

The Superintendent shall be responsible for notifying the Board whenever, in his/her opinion, the opportunity for the District to gain financially by borrowing arises or the ongoing operations of the schools make borrowing necessary.

Procedures for borrowing shall be initiated by the Board and approval shall be obtained as required from the Municipal Financial Commission or the State Department of Education. The District's bookkeeper shall prepare the data and applications regarding the borrowing of funds against State Aid Notes, Tax Anticipation Notes and Bond Issues.

Bids shall be solicited for all short term loans which the Board has authorized. Funds shall be borrowed from the responsible organization offering the most favorable terms, as approved by the Board.

M.C.L.A. 134.1 et seq., 188.761 et seq., 380.144, 380.1225

Revised 11/14/94