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(1) A K-12 district may become indebted by the issuance of bonds, including all outstanding bonds and registered warrants assumed at the time of formation of the K-12 district, up to 100% of the taxable value of the property subject to taxation, pursuant to 20-9-406, MCA. The bonded indebtedness may not exceed 50% of the taxable value for elementary program purposes and 50% for high school purposes. The exception to this limit is an elementary or high school that qualifies for guaranteed tax base aid under provisions of 20-9-367, MCA. For these K-12 districts, the maximum indebtedness is 50% of the sum of the statewide mill value per elementary ANB times 1000 times the elementary ANB of the district and the statewide mill value per high school ANB times 1000 times the high school ANB of the district.

(a) In addition to the requirements in 20-9-422, MCA, a K-12 district resolution for election to authorize the issuance of bonds must indicate the portion of the bond obligation which will be considered an obligation for the elementary program and the portion which will be considered an obligation for the high school program.

(b) In order to determine the total percent of bonded indebtedness attributed to either the elementary (prekindergarten through grade 8) program or the high school (grades 9 through 12) program, the board of trustees shall do the following calculation:

bonded indebtedness

 high school

           i) amount remaining
from individual district indebted-
ness incurred prior to formation
of K-12 district
__________ __________ __________

(ii) amount remaining
from indebtedness incurred as a
K-12 district, times the percent
of obligation for each program as
indicated on adopted bond
resolution in (a)

__________ __________ __________
           (iii) total (i) + (ii) __________ __________ __________
           (iv) taxable value of
district or 50% of the statewide
mill value per ANB times 1000
times the ANB of the district

(v) percent of indebtedness
(iii) divided by (iv)

_________% _________% _______%

History: 20-3-106, MCA; IMP, 20-9-406, MCA; NEW, 1992 MAR p. 226, Eff. 2/14/92; AMD, 1994 MAR p. 1824, Eff. 7/8/94; AMD, 2010 MAR p. 1990, Eff. 9/10/10.

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