Glossary of Municipal Securities Terms

FEASIBILITY STUDY

A report or study detailing the economic practicality of and the need for a proposed program, service or project. It frequently analyzes the market or demand for the program, project or service being considered, historical revenues and expenditures for the same or comparable facilities, and, based upon assumptions, makes forecasts or projections of financial performance or other operating statistics. The feasibility study may include a user or other rate analysis to provide an estimate of revenues that will be generated for the purpose of substantiating that debt service can be met from pledged revenues. In addition, the feasibility study may provide details of the physical, operating, economic or engineering aspects of the proposed project, including estimates of or assumptions regarding construction costs, completion dates and drawdown schedules. See: FEASIBILITY CONSULTANT.

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