DUTIES ON DEBT AND INDEBTEDNESS

• Determine Net Indebtedness of County - §133.07; §5705.01

• Certify Maximum Maturity of Debt Securities - §133.19

• Estimate Levies for Bond Issues - §133.18

• Maintain Record of County Indebtedness - §307.54

• Sign All County Issued Bonds - §133.27

• Certify Rates of Taxation Necessary to Retire Debt of County Subdivisions - §133.18

• Calculation of Millage of Emergency Levies - §5705.195
  

Every subdivision has a limit on how much debt it may incur. These limits, by code, are based on upon a certain percentage of the total tax valuation of the subdivision.

The County cannot incur net indebtedness that exceeds an amount equal to one percent of its tax valuation. The Auditor is responsible for calculating this debt limit for the County. The calculations are based on the valuation of the County, outstanding debt, and excluding exempted debt. Once the debt limit of the County is established, the Auditor determines if the amount of debt is within the limit. The Auditor also must certify the length or maturity of any voted debt issued by the County. If the debt is within the County limit, the Auditor then estimates the millage needed to service the debt. The millage is calculated using the amortization schedule of the debt and the valuation of the County. The Auditor completes a Ten Mill Certificate for the County using those subdivisions within the taxing district with the highest un-voted millage. The new millage together with the total millage for the taxing district cannot exceed 10 mills. This same procedure is used with the debt of other taxing authorities in the County.

If an emergency levy is to be put on the ballot, the County Auditor must certify to the taxing authority the millage necessary to produce the specific amount set forth in the resolution. Additionally, if a bond issue is to be put on the ballot, the County Auditor must certify to the taxing authority the average millage needed during the maturity of the bond.

Once a bond issue has been passed, the Auditor must place the proceeds from a debt levy into a separate Debt Retirement Fund at each tax settlement. When a debt is fully amortized and no further payments are necessary, excess proceeds remaining may be transferred from the Fund to another Fund of like purpose. If a Fund of like purpose does not exist, the unexpended balance, with the approval of the Court of Common Pleas of the County, may be transferred to any other Fund of the subdivision.