STATE CONSTITUTIONAL AND STATUTORY LIMITATIONS ON LOCAL GOVERNMENT POWER TO ISSUE GENERAL OBLIGATION LONG-TERM DEBT, 1967 Remarks C-S 3 to 5. 5 to 7ab LAV Municipalities School districts. Georgia: Municipalities. 939 S None. do. No limitations. No limitations. EAV Ma EAV Mb EAV Ma No limitations a dob No limitations.. dob. ააი No rate limitations.. No rate limitations. Many exceptions are provided by constitutional amendments and statutes applicable to individual local governments. b5 percent for cities under 6,000 population, subject to an additional 3 percent for specified purposes; 7 percent for cities over 6,000 population, subject to an additional 7 percent for specified purposes. But in no case to exceed 10 percent of equalized assessed valuation. b Up to 15 percent additional for water supply, sewers, and lighting. Limited only as to the maximum allowable property tax rate for debt service. b By permission of State board of education limit may be raised to not exceed 18 percen of total assessed valuation. May go to 15 percent for water and road purposes. b Chartered municipalities may establish their own limits. 5 percent for elementary high school, and junior college districts; 10 percent for unified districts not maintaining a junior college; 15 percent for unified districts with junior college. 0.6 percent for counties having over $5,000,000 assessed valuation; 1.2 percent for counties with less than $5,000,000 assessed valuation. b Chartered and home rule municipalities may establish their own limits. Water boards are excluded from limit. d In conditions of emergency an additional 5 percent may be granted with approval of a Debt restricted to 24 times the latest 3-year average annual tax receipts. This limit can May be modified by individual charters. Up to 3 percent additional debt may be authorized by general assembly, subject to approval by a majority of voters, but such additional debt must be retired in 5 years. real property. . But the amount issued in any 1 year cannot exceed 2 percent of assessed value of taxable Debt incurred in any year cannot exceed revenue for fiscal year without approval by a majority of the voters on the issue. a By judicial interpretation. Debt incurred for hospitals, and for other specified purposes is excluded from limit. 10 percent for common school districts in counties with population of 125,000 to 200,000. d With approval of board of school fund commissioners (subject to subsequent election to vote on the question of issuing the increased amount of bonds). a Plus 5 percent for roads. b1st- and 2d-class cities, and 3d-class cities with more than 15,000 population, 10 percent; 3d-class cities with less than 15,000 population, and 4th-class cities and towns, 5 percent; 5th-and 6th-class cities and towns, 3 percent. Each county bond issue is subject to State legislative authorization. b Debt incurred for certain enumerated purposes is excepted, in some cases with separate rate limits (for example, 10 percent for water supply). An additional 5 percent for towns and 21⁄2 percent for cities with approval of the emergency finance board. EXCERPT FROM H.R. 1270, 90TH CONGRESS, 2ND SESSION-Continued APPENDIX 5-Continued STATE CONSTITUTIONAL AND STATUTORY LIMITATIONS ON LOCAL GOVERNMENT POWER TO ISSUE GENERAL OBLIGATION LONG-TERM DEBT, 1967-Continued Remarks Michigan: Counties. Municipalities. School districts. Minnesota: Counties. Municipalities *. Townships. 605 ៖៖៖ ៖៖ None. do.. do. do. do. M. a Limitation does not apply to 1st-class cities (St. Paul, Minneapolis, Duluth). b Where at least 20 percent of the local tax base consists of railroad property (which is exempt from local taxatoin) special provisions apply. * 15 percent for debt incurred to repair flood damage to roads and bridges. b 15 percent for debt incurred for water, sewer, gas, electric, and special improvements. ■ Additional 5 percent. b Cities may incur an additional 5 percent plus an additional 10 percent for streets and Additional 5 percent for water and sewer debt only (statutory provision). EAV do EAV Ma C 5. EAV None. Nebraska No limitations No limitations. Nevada: Excludes the 5 counties comprising New York City. See ". 10 percent for New York City, and 9 percent for other cities over 125,000 population, d 5 percent for school districts in cities under 125,000 population; 10 percent for noncity • Subject to approval by the State board of regents and/or the State comptroller. 5 percent for school purposes (8 percent where county has assumed debt for all school b An additional limitation is imposed by the constitution: Voter approval is required for Additional debt may be incurred for waterworks, up to 4 percent. b Additional 3 percent. • Additional 5 percent. Net indebtedness shall never exceed 3 percent of first $100,000,000 of taxable value plus » Amount incurred in any year may not exceed revenue for the year, except by a majority vote. b Additional 5 percent. a 0.55 percent for grades 1-8; 0.75 percent for grades 9-12; 1.5 percent for community a Up to 5 percent without referendum; any debt incurred beyond the 5 percent limit, up b For Philadelphia, the upper limit is 13.5 percent with up to 3 percent without referendum. Where 2 or more jurisdictions overlap, aggregate limit is 15 percent. • Except that industrial building bonds are limited to 10 percent of assessed valuation, and require a 4 majority in referendum. • Inclusion of debt service in property tax limits has the effect of limiting debt incurrence as well. b 0.2 percent for junior college districts. EXCERPT FROM H.R. 1270, 90TH CONGRESS, 2ND SESSION-Continued APPENDIX 5-Continued STATE CONSTITUTIONAL AND STATUTORY LIMITATIONS ON LOCAL GOVERNMENT POWER TO ISSUE GENERAL OBLIGATION LONG-TERM DEBT, 1967-Continued a Debt incurred in any 1 year may not exceed amount of taxes raised for the year without a simple majority approval of the electorate (property taxpayers). b By judicial interpretation. • 1st and 2d class cities are granted an additional 4 percent, 3d class cities and towns an additional 8 percent debt for construction of water, lights, sewer facilities. The statutory limit is "10 times the grand list of the municipal corporation." The "grand list" is 1 percent of the locally assessed valuation. Debt incurrence that would bring total above 1.5 percent subject to approval by 60 percent majority vote, but in no case may it exceed 5 percent. However, an additional 5 percent is authorized for municipally owned utilities, b Debt incurrence that would bring total above 1.5 percent subject to approval by 60 percent majority vote, but in no case may it exceed 5 percent. However, a constitutional amendment authorizes an additional 5 percent for "capital outlays.' " do. do. a No more than 4 percent for county buildings or 1 percent (by sole action of the county board) for highways. b Municipalities operating schools may incur an additional 10 percent for school purposes. 10 percent for school districts offering no less than grades 1-12 and which are eligible for highest level of State aid ("integrated" districts). a Additional 4 percent authorized for sewer construction. None. (a). None. 1 The citation is either the State's constitution (C), statutes (S), or both (C-S). 2 Percentage debt limitations are generally applied against property values, as follows: Full or market value (MV); locally established assessed value, or State established assessed value in the case of State assessed property such as utilities (LAV); or State equalized assessed value (EAV). * Other than by amendment of the constitution or statutes. A simple majority (a favorable majority of 50 percent plus one of all votes subject to counting on the question) is indicated by "M;" where more than a simple favorable majority is required, the required percentage is entered. Note. This table deals only with limitations that affect generally the amount of general obligation debt that counties, municipalities, and school districts can issue. In a number of States genera obligation debt issued for specified purposes is excluded from the general rate limitations either by constitutional or statutory provisions. In addition, specific debt limitations are often imposed upon special districts. No attempt has been made to treat the exceptions or the special district limitations because of their great variety. Also excluded from this table are provisions that set maximum interest rates or time periods for which bonds may be issued. Source: Advisory Commission on Intergovernmental Relations. |