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Funding improvements with debt capital and revenues
Author(s) -
Marshall W.N.
Publication year - 1982
Publication title -
journal ‐ american water works association
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.466
H-Index - 74
eISSN - 1551-8833
pISSN - 0003-150X
DOI - 10.1002/j.1551-8833.1982.tb04973.x
Subject(s) - bond , debt , revenue , revenue bond , debt service coverage ratio , municipal bond , finance , capital (architecture) , business , bond market , capital expenditure , interest rate , monetary economics , financial system , economics , external debt , archaeology , history
A municipal water utility about to engage in a major construction program necessitating a bond sale and forcing an increase in water rates should plan to fund all capital expenditures with a combination of bond proceeds and revenues. The optimum combination of funds Is related to interest rates, duration of construction, and debt service coverage. The greater the impositions of the bond market, the greater are the advantages of combination funding.