All of the following statements regarding a municipality's debt limit are true EXCEPT that:
A) revenue bonds are not affected by statutory limitations.
B) unlimited GO bonds may be issued when a community's taxing power is not restricted by statutory provisions.
C) the debt limit is the maximum amount a municipality can borrow in any one year.
D) the purpose of debt limits is to protect taxpayers from excessive taxes.
Answer: C) the debt limit is the maximum amount a municipality can borrow in any one year.
The debt limit is the maximum amount of debt a municipality can have outstanding.