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 ?
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.
The Series 2016 Bonds are anticipated to be secured by the Citys Transportation Surtax and issued with 30-year level debt service. The Bonds are currently anticipated to be issued as federally taxable but may have a tax-exempt series.
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 structure.
TIBs are fixed rate with 20-year level debt service amortizations.
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.