Debt sustainability refers to a municipality's ability to manage its debt obligations over the long term without compromising service delivery or financial stability. A sustainable debt position means the community can continue meeting debt payments while maintaining services, responding to emergencies, and investing in future needs. Analysts assess sustainability through multiple indicators: debt servicing costs relative to revenues, total debt compared to tax base or income, debt growth rate versus revenue growth, and the municipality's credit rating. Factors threatening sustainability include taking on too much debt, interest rate increases on variable-rate debt, economic downturns reducing revenues, or infrastructure crises requiring emergency borrowing. Sustainable debt policies balance infrastructure investment needs against maintaining financial flexibility for future generations.