community debt

Community debt refers to the accumulated financial obligations that a local government or community entity owes, often resulting from projects like infrastructure, public services, or development initiatives. It is typically financed through borrowing, such as bonds or loans, with the expectation that future revenues—like taxes or fees—will cover these costs. Managing community debt involves balancing investment in community growth with fiscal responsibility to ensure that debt levels remain sustainable and do not burden residents or hinder future services. Proper oversight is essential to prevent excessive borrowing and to maintain financial health.