If exceptions are not properly requested, justified and
approved, the Department will take the following actions:
(1) The Department will not approve a reimbursable
building project when the local share of the total commitment of the district to
capital debt and interest thereon, including that for the proposed project, is
greater than 25% of the total of its revenue from local sources. The calculations
shall be from data projected for the fiscal year in which the proposed facilities
are to be occupied.
(2) The Department
will not approve a reimbursable building project when the sum of the projected local
share of the annual cost of amortization of the project and the current local
effort, as measured in mills on market value, is greater than the product of the
Statewide average for local effort, measured in mills on market value, and 2.0000
minus the current aid ratio of the district. Calculations under this section will be
made on forms provided in the Department's Construction Planning Manual.
(3) The Department will not approve a project if
the most recent financial report submitted by the applicant district shows evidence
of possible fiscal distress as determined by the Department.