ABSTRACT
The preceding chapter dealt with the concept of "cash available for debt service." This is the specific term used to identify that portion of a water or wastewater system's net income which can be used to estimate, and pay for, project payments. Such project payments, on an annual basis, are usually called "annual debt service" or "annual debt service payments." This chapter will deal with the concept of "debt service" itself. As you will see, the notion of debt service can mean considerably more than the simple principal and interest normally involved in a loan transaction.
