• Skip to main content
  • Skip to header right navigation
  • Skip to site footer
Project Ketchum

Project Ketchum

City of Ketchum

  • Home
  • City of Ketchum
  • Stay in the Loop

Wastewater Bond Election

The city recently completed a Wastewater Facility Plan which outlines future capital improvements at the treatment plant over the next twenty years. The slides below provide the details of those future improvements. 

On November 8th, Ketchum voters will have the opportunity to vote on whether the city will be allowed to issue up to $14 million in revenue bonds to fund the capital improvement plan. Revenue bonds would be funded via existing monthly sewer rate payers and do not affect property taxes in any way. Funding the improvements via revenue bonds will avoid significant rate increase (60% for 2023, 25% in 2024 and 2025). Should voters approve the issuance on revenue bonds, it would greatly reduce the pressure on future rate increases.

Frequently Asked Questions

What is a revenue bond?

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.

Why do we need the money?

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.

How much is the project?

Approximately $37,207,000.

What is the interest rate on the bonds?

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

What is the total cost of the bonds?

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.

Why are only half the funds needed?

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.

Will this bond increase my property taxes?

No. No taxes will be levied.

How will the bond be repaid?

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

How many votes are needed to pass the bond?

A majority of voters is required.

What happens if the bond doesn’t pass?

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.

Upcoming Events

  • November 8th – Election Day

Related Resources

  • July 18, 2022 – Council packet