Net Total Debt is the total of a municipality’s direct debt plus its overlapping debt.
Applying "Net Total Debt" to Securities Exams:
the total debt of a municipality will often have overlapping debt issued by another municipality county or state that it must repay. A county may issuer general obligation bonds to fund projects that benefit a number of municipalities within that county. As such all of the municipalities will have overlapping debt that it must calculate as part of its net total debt.