A revenue bond is a special type of municipal bond distinguished by its guarantee of repayment solely from revenues generated by a specified revenue-generating entity associated with the purpose of the bonds, rather than from a tax.

The funds are needed to renovate, improve, upgrade and better the city’s wastewater system to comply with water quality regulations of the United States Environmental Protection Agency and Idaho Department of Environmental Quality.

Approximately $37,207,000.

It is anticipated the interest rate will be 4.160% per annum but will be fixed at time of each series issuance.

Based on the anticipated interest rate, the total cost is estimated to be $24,817,125, consisting of $14,000,000 in principal and $10,817,125 in interest.

The other portion of the project will be defrayed by federal grants, grants from the State of Idaho, funds derived from the city’s cooperative agreement with the Sun Valley Water and Sewer District, and potentially some city funds.

No. No taxes will be levied.

Principal and interest on the proposed bond will be paid solely from the net revenues of the city’s wastewater system.

A majority of voters is required.

There will be an initial 60% customer rate increase and two subsequent 25% rate increases. Issuance of wastewater bonds will keep upfront wastewater rate increases lower and more affordable.