WASHINGTON - The District of Columbia Council yesterday approved a bill that would cap payments on all of the district's tax-supported debt at 12% of its expenditures. That's a much stricter limit than its current cap, which only applies to general obligation bonds and restricts their debt service payments at 17% of revenues.

The 12% cap would include payments on tax increment financings and bonds backed by payments in lieu of taxes, representing a reversal for some council members who had wanted to only include GOs.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.