What is the maximum total debt increase for a county according to its assessed valuation?

The correct answer indicates that a county is allowed to increase its total debt by a maximum of 10% based on its assessed valuation. This limit is established to ensure that counties maintain fiscal responsibility while allowing for needed borrowing. The rationale behind this restriction is to prevent excessive debt accumulation, which could jeopardize the county’s financial stability and the services it provides to residents.

The assessed valuation serves as a benchmark because it reflects the taxable value of properties within the county. By limiting debt increases to a percentage of this valuation, the law aims to align borrowing with the county's financial capacity to repay the debt, ensuring that any new obligations are sustainable in relation to the county’s overall economic climate.

This cap on total debt increase helps maintain a balance between the county's growth and its financial health, allowing for necessary investments in infrastructure and services while protecting taxpayers from burdensome debt levels.