(1) The amount of general fund end-of-year balance designated as operating reserve may not exceed 10% of the adopted general fund budget for the ensuing school fiscal year or $10,000, whichever is greater.
(2) The amount earmarked as reserves can exceed the limitations of (1) by a combination of one or more of the unused balances described in 20-9-104 (5) , MCA.
(3) Amounts that have been identified in (2) cannot be identified as reserves in excess of the operating reserve unless the limitation of operating reserves in 20-9-104 , MCA, which is the greater of either 10% of ensuing year's budget or $10,000, has been met.
(4) Reserves are reidentified each year when budgeting for the ensuing year. After the fund balance for the general fund budget is determined and the operating reserve is fully met, the trustees may determine any revenues that have been received by the district in the current year according to 20-9-104 (5) , MCA. This amount must only include revenues received that were protested and/or delinquent from a prior tax year. The amount must not include revenues received which were protested and delinquent taxes from the current tax year. Current year interest earned on money held as excess reserve amounts may not be included as additional excess reserves. Interest on excess reserves is general fund nonlevy revenue. However, current year receipts of penalties and interest on protested and delinquent taxes from the current or prior years may be included in the reserve. The amount identified may be added to the current year's identified excess reserves, minus amounts used in the current year for budget amendments for deferred projects, minus amounts used to fund the ensuing year's budget. Total operating and excess reserves must not exceed the fund balance available for those reserves.
(5) OPI shall monitor the general fund budget of each school district to ensure compliance with the reserve limits established in 20-9-104 , MCA. The Superintendent of Public Instruction may request a revised budget from any district whose reserves do not comply with the limit using the guidelines established in ARM 10.10.503.