The certificates were structured with level debt service
for the 40-year term after the interest-only period during the initial development period, or IDP.
A planned use of surplus reserves and use of capitalized interest will allow the Village to maintain level debt service
With a level debt service
, early payments primarily cover interest costs, and principal repayment increases over the life of the bond.
This is not level debt service
because the total payments are not constant for all periods.
Systems must decide if the traditional municipal model of level debt service
will make sense in in the future.
The rest of Xavier's debt is fixed-rate with a level debt service
For jurisdictions that choose to use a level debt service
structure, achieving this rate of repayment is challenging.
Most municipal bond issues are structured with level debt service
payments over the life of the issue.
The airport's debt is fixed rate and fully amortizing, with aggregate level debt service
of approximately $24 million annually through 2033.
Repayment provisions place restrictions on debt service payments; they include 1) policies related to time-pattern, which describe the structure and pattern that should be utilized, including front-loaded, level principal, level debt service
, or 50 percent of principal repaid within 10 years; 2) policies related to sources suggesting use of funds other than property taxes (e.g., user fees for revenue bonds), where possible, to pay debt service; and 3) policies related to equity suggesting that those who benefit from projects should be the source of debt service payments.