What is the limit of debt a local government can incur based on assessed property?

In Georgia, the constitution imposes a limitation on the amount of debt that local governments can incur based on the assessed value of property within their jurisdiction. This limit is set at 10 percent of the assessed value of all taxable property within the local government's boundaries. This restriction is designed to ensure that local governments do not take on excessive debt that could jeopardize their fiscal stability and the services they provide to residents. The rationale behind this limit is to maintain a balance between the need for local investment in infrastructure and public services and the capacity of the taxpayers to shoulder this debt without financial strain. This principle is in line with best practices in public finance management, which prioritize sustainable growth and responsible fiscal policies at the local government level.