In New York State, there are limits to how much debt a local government or school district can incur.

For counties, cities, towns and villages:

• The debt limit is a percentage of the five-year average full valuation of taxable property within a municipality.
• Debt issued for the purpose of water supply and distribution and certain types of short term borrowings are excluded from the debt limit.
• Exclusions from the limit for debt related to sewer projects and certain types of self-liquidating debt are available.

For city school districts (other than the Big 5 districts)

• The debt limit is a percental of the five-year average full valuation of taxable property within a district.

For school districts outside cities:

• The debt limit is a percentage of the current full valuation.