This is one of our most asked questions. The debt service charge on your billing is the part that pays for the all the loans (or debt) of the Authority. The initial loan to construct the system was a 40 year loan for over $8 million. System improvements that require the Authority to borrow money are paid for with the debt service charge collected on
The second most asked question is “when will the loan be paid and the debt service be removed from the billing?”. As previously explained, the initial loan was a 40-year loan. This loan is expected to be paid off in 2033. However, as the plant and system age, upgrades and improvements will be required which will result in additional borrowed funding. Debt service will likely always be part of the billing.
