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639

MAPLE DALE-INDIAN HILL SCHOOL DISTRICT POLICY

RECURRING OPERATING REFERENDUM MANAGEMENT

This policy shall guide the fiscal management of funds should MDIH pass a recurring operational

referendum. The MDIH school district has a reputation for strategic and competent fiscal

stewardship. As such, the intent of this policy is to protect the long-term interests of MDIH

taxpayers by outlining a plan to address shortfalls caused by historically high inflation. This policy

will:

● Limit expenditures to avoid unsustainable budgets

● Reduce the likelihood of another referendum in the future

● Eliminate principal and interest debt expenses

The following priorities shall be used as a guide and be reviewed each year at the district’s annual

budget hearing.

Priority 1 - Fund 10 Operational Costs

Our community unequivocally values small class sizes, breadth of course offerings, and academic

reputation. The district will use referendum funds to maintain operations while ensuring long-term

fiscal responsibility.

● No more than $800,000 may be used for Fund 10 as long as this policy is in force.

Priority 2 - Fund Balance

A healthy fund balance ensures a strong credit rating, prevents the need for short-term borrowing,

and replenishes emergency funding. The district will maintain a fund balance consistent with board

policy 662.3.

● Additional funds will first be used to replenish the fund balance used to offset the 2024-

2025 budget.

Priority 3 - Fund 46 Long-Term Capital Improvement

Since passage of the 2019 referenda, a capital improvement plan was created to maintain the

investment made by our community. The district will continue to support the 10-year capital

improvement plan to limit further requests for additional funding from taxpayers.

● The district endeavors to commit a minimum of $200,000 annually to Fund 46.

Priority 4 - Fund 39 Debt Service

Paying debt early prevents taxpayers from paying future interest and shortens the length of time

taxpayers pay off debt.

● The district will continue to make payments on 2019 debt bonds in an effort to reduce

interest expense and long-term debt.

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Expiration of 2019 Operational Referendum

This policy shall sunset on June 30, 2029, when the 2019 referendum expires.

Adopted: August 15, 2024