Debt-to-AV Ratio

The debt-to-assessed-value (Debt-to-AV) ratio measures how much outstanding debt a special district carries relative to the total assessed property value within its boundaries.

It is calculated by dividing the district's total outstanding debt by the aggregate assessed value of all properties in the district.

A higher ratio means the district has more debt per dollar of tax base, which can indicate greater financial risk and a higher likelihood of sustained elevated mill levies.

Generally, ratios below 30% are considered manageable, ratios between 30% and 60% warrant attention, and ratios above 60% suggest significant debt burden.

For home buyers, a high debt-to-AV ratio in a metro district often means you will be paying elevated property taxes for many years as the district works to retire its bonds.