The Southside City has $95 million of debt recorded in its Schedule of Changes in Long-Term Obligations, made up of $60 million of general obligation debt, $2 million of compensated absences payable, $8 million claims and judgments, and $25 million of obligations under capital leases.The State limits the amount of general obligation debt that can be issued by a City to 20% of the assessed value of taxable property.The assessed value of property in Southside City is $500 million.The amount of legal debt margin for Southside City is

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The legal debt margin is the difference between the City's debt limit and the amount of outstanding general obligation debt. The City's debt limit is 20% of the assessed value of taxable property, which is $100 million ($500 million x 20%). Therefore, the legal debt margin is $40 million ($100 million - $60 million), which is the amount of general obligation debt the City can issue without exceeding its debt limit.

The Southside City Has $95 Million of Debt Recorded in Its