One of the tricky aspects regarding City Schools Decatur asking commissioners for an $82 million General Obligation Bond is that by borrowing that money Decatur would approach its constitutional debt limit. The city’s debt combines both its municipal and school debts, which is unusual according to CSD consultant Dianne McNabb.
“All county school systems and county governments [in Georgia] are separate,” she said. “Each has a 10 percent debt limit.”
So does Decatur, with a debt limit currently $141,498,107, based on property values from 2014. By Jan. 1, 2016, with payments on past projects, that limit will be reduced by another $36.67 million or down to $104.8 million. But if voters approve the $82 million bond, the city can only borrow $21,998,107 for projects or emergencies, according to McNabb’s projections.
About the Author
