MassAnalysis: Highest income towns per capita within average debt range or higher
Understanding debt limits Municipalities issue debt to fund long-term capital projects such as schools and other buildings. In well-run communities, bond terms align with the lives of the capital assets being funded, a practice that provides resources for future projects. Paying debt service on assets long out of use can have dire financial consequences. So who decides when bonds should be issued? Cities, towns, and special purpose districts may authorize indebtedness by a two-thirds vote of their respective legislative bodies. A municipality’s statutory debt limit is based on equalized valuations (EQV). The EQV represents the estimated value of all taxable property in each municipality, an amount that is regulated and reviewed every three years by the Commonwealth’s Bureau of Local […]