AWWA JAW6714

Water utilities, especially those with low bond ratings, can fund capital improvements with a combination of debt capital and revenues. The optimum amount of new debt to be contracted at a single bond sale for a construction program extending over n years is equal to a portion (K1) of total capitalization during that interval diminished by a portion (nK1K2) of existing maximum debt service. The cash coverage factor and the number of years required for completion of a construction program are more influential than interest rates in determining the optimum amount of long-term debt to issue. Includes table, figures.

Product Details

Edition:

Vol. 74 - No. 9

Published:

09/01/1982

Number of Pages:

4

File Size:

1 file , 1.3 MB