i.4.2.3 Decision #3 – Select a term
The public agency also must decide the term of its debt, that is the length of time the debt may be owed. The term may be short, medium, or long. This decision hinges on the answers to three questions:
- How much debt service is the agency able to pay without limiting other programs or services?
- Over what period does the public agency plan to repay the debt?
- How does the term of the debt align with the useful life of the asset being financed?