STATE CONSTITUTIONAL AND STATUTORY LIMITATIONS ON LOCAL GOVERNMENT POWER TO ISSUE GENERAL OBLIGATION LONG-TERM DEBT, 1967 Remarks C-S 3 to 5. LAV 5 to 7ab. LAV None. do. 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. a 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. Chartered and home rule municipalities may establish their own limits. • Water boards are excluded from limit. din conditions of emergency an additional 5 percent may be granted with approval of 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. But the amount issued in any 1 year cannot exceed 2 percent of assessed value of taxable real property. Debt incurred in any year cannot exceed revenue for fiscal year without approval by a majority of the voters on the issue. 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. 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 • An additional 5 percent for towns and 2 percent for cities with approval of the emer- 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 Rate limit State and types of local government Citation 1 Percent Applied against 2— Provisions for exceeding limit 3 Remarks None. .do. .do. a Optional for home rule cities. 20. EAV. do 20. EAV do. 20. EAV. do.. 10.. MV b M. School districts.. 10 LAV None 10 b LAV do. 15. Missouri: LAV .do.. Counties. C-S Municipalities. EAV 2/3 a C-S School districts. EAV 2/3 b C-S EAV None • 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). Nebraska.. Nevada: Counties. New Hampshire: Municipalities. New Jersey: New Mexico: • Excludes the 5 counties comprising New York City, Se* *. b Except Nassau County where the limit is 10 percent. • 10 percent for New York City, and 9 percent for other cities over 125,000 population, 45 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 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 11⁄2 percent of taxable value in excess of $100,000,000 and not in excess of $300,000,000, plus 21⁄2 percent of taxable value in excess of $300,000,000. • 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 college. a Up to 5 percent without referendum; any debt incurred beyond the 5 percent limit, up to 15 percent, requires a simple majority approval of the electorate. b For Philadelphia, the upper limit is 13.5 percent with up to 3 percent without referendum. a Where 2 or more jurisdictions overlap, aggregate limit is 15 percent. Except that industrial ouilding 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 Remarks MV b None. MV b (c). MV b None 10 LAV do. No limitations. No limitations. C-S 18. LAV None C 5 a LAV 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. a 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 b Debt incurrence that would bring total above 1.5 percent subject to approval by 60 No more than 4 percent for county buildings or 1 percent (by sole action of the county b Municipalities operating schools may incur an additional 10 percent for school purposes. Additional 4 percent authorized for sewer construction. 1 The citation is either the State's constitution (C), statutes (S), or both (C-S). 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' Source: Advisory Commission on Intergovernmental Relations. |