Net Total Debt

Definition - What does Net Total Debt mean?

Net Total Debt is the total of a municipality’s direct debt plus its overlapping debt.

Testopedia explains Net Total Debt

the total debt of a municipality will often have overlapping debt issued by another municipality county or state that it must repay. A county may issuer general obligation bonds to fund projects that benefit a number of municipalities within that county. As such all of the municipalities will have overlapping debt that it must calculate as part of its net total debt.

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