Level debt service

Level debt service

A municipal charter provision that debt payments must be relatively equal from year to year so that required revenue projections are easier.

Level Debt Service

A provision in many city and other local government charters stating that debt payments must be relatively equal from year to year. This allows the municipality to make revenue projections more easily, but may impose constraints on municipal bond issues. See also: Debt ceiling.
References in periodicals archive ?
TIBs are fixed rate with 20-year level debt service amortizations.
This is not level debt service because the total payments are not constant for all periods.
The transaction was unusually complex because each of the 22 projects, although financed in one transaction, had to be structured individually to attain level debt service, which is required for the university's department- based capital cost allocation process," said Bill Matlock, lead banker on this transaction and managing director of SBK-Brooks' Columbus office.
Most municipal bond issues are structured with level debt service payments over the life of the issue.
The certificates are structured with level debt service for the 40-year term after the interest only period during the initial development period, or IDP.
For jurisdictions that choose to use a level debt service structure, achieving this rate of repayment is challenging.
This transaction is part of an overall program to restructure and level debt service payments.
Both series are uninsured fixed rate debt producing level debt service.
Both of the 1998 series refundings achieve debt service savings and maintain the Authority's level debt service requirements.
With estimated level debt service of approximately $37 million per year, NIMPA's debt service coverage will likely be in the 1.
The rating reflects the overall low loan-to-value of 43%, using Fitch's adjusted net cash flow (NCF) as the basis for valuation, and high property- level debt service coverage ratio of 2.
Increased debt service costs and slower taxable assessed valuation (TAV) growth prompted the district to transfer available general fund resources for debt service beginning in fiscal 2011 in order to maintain a level debt service tax rate and flexibility under the state's statutory tax rate cap limiting new money debt issuance.