In an emergency, a bond ordinance may be adopted if the net debt to average equalized valuation exceeds the debt limit after obtaining approval of which board?

In an emergency, a bond ordinance may be adopted if the net debt to average equalized valuation exceeds the debt limit after obtaining approval of which board?

• A. Governor's Office
• B. Municipal Board
• C. Local Finance Board
• D. State Tax Board

Answer: (C)

When a municipality would exceed its statutory debt limit, it can still proceed with an emergency bond ordinance, but only after the Local Finance Board approves. This state board reviews requests to incur debt beyond the normal limit in urgent situations to ensure the borrowing is truly necessary to protect public health, safety, or welfare and to guard the municipality’s financial stability. The Governor's Office, a generic Municipal Board, or the State Tax Board do not authorize these emergency debt exceptions, so the Local Finance Board is the designated authority.

When a municipality would exceed its statutory debt limit, it can still proceed with an emergency bond ordinance, but only after the Local Finance Board approves. This state board reviews requests to incur debt beyond the normal limit in urgent situations to ensure the borrowing is truly necessary to protect public health, safety, or welfare and to guard the municipality’s financial stability. The Governor's Office, a generic Municipal Board, or the State Tax Board do not authorize these emergency debt exceptions, so the Local Finance Board is the designated authority.