Chapter+6+Overlapping+Debt+Example - Debt(in millions...

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Overlapping Debt Example The property of a city is located within a total of five governmental units as shown below. Outstanding Debt (in millions) Assessed Valuation of Taxable Property (in millions) County $320 $2,000 School District 160 2,000 Transportation District 12 2,400 Library District 40 4,000 City 400 1,800 The city’s direct debt is $400 million. The city’s share of debt of the overlapping jurisdictions is based on the ratio of the assessed value of the city’s own property to that of each of the other jurisdictions. Share of City
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Unformatted text preview: Debt (in millions) Proportion (in millions) Percent Amount Direct debt City $400 $1,800/$1,800 100% $400 Overlapping Debt County $320 $1,800/$2,000 90% 288 School District 160 $1,800/$2,000 90% 144 Transportation District 12 $1,800/$2,400 75% 9 Library District 40 $1,800/$4,000 45% 18 Total overlapping debt $459 Total direct and overlapping debt $859 The city’s property supports its own debt of $400 million and $459 million of the debt of other governments with overlapping geographic boundaries....
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