Policy DE: Debt Limitations

BOARD POLICY
Descriptive Code: DE

DEBT LIMITATIONS
Date: JANUARY 4, 1999

Any and all debts or obligations which are not to be discharged by a tax levied within the year in which the liability is undertaken, except temporary loans and multi-year leases, purchases, and contracts, shall not be incurred without the assent of a majority of the qualified voters, voting in an election for that purpose to be held as prescribed by law. The amount of such debt cannot exceed 10 percent of the assessed value of all taxable property located within the Newton County School District.

Temporary Loans

An exception to the debt limitation provision is that the Board may make temporary loans between January 1 and December 31 in each year to pay expenses for the year provided that the aggregate amount of such loans does not exceed 75 percent of the tax revenue collected in the last preceding year. All constitutional and state laws shall be followed in obtaining temporary loans.

Multi-Year Leases, Purchases, Contracts

The Board of Education may enter into multi-year leases, purchases, or lease-purchase contracts provided that any such contract provides the following provisions:

1. The contract shall terminate at the close of the calendar year in which it was executed and at the close of each succeeding calendar year for which it may be renewed.

2. The contract may provide for automatic renewal.

3. The contract shall state the total obligation of the school system for the calendar year of execution and shall further state the total obligation which will be incurred in each calendar year renewal term, if renewed. The total combined annual payments for multi-year contracts, excluding those exempt by state law, shall not exceed an amount equal to 7.5% of the total local revenue collected for maintenance and operation of the school system in the most recently completed fiscal year.

ADOPTED: 8/16/88

Newton County Board of Education