Boise City Sewer District Bond – $570,000,000 of a Total $3,000,000,000 Total Replacement Cost
BOISE CITY SEWER DISTRICT BOND TO CONTINUE TO PROTECT THE BOISE RIVER, ENSURE RELIABLE SEWER SERVICES, ENCOURAGE ECONOMIC DEVELOPMENT, AND TO TAKE CLIMATE ACTION, IN OCTOBER 2020 BOISE CITY COUNCIL APPROVED ESSENTIAL IMPROVEMENTS TO BOISE’S WATER RENEWAL SYSTEM (WITH AN ESTIMATED REPLACEMENT VALUE OF $3,000,000,000), INCLUDING UPGRADING AGING PIPES AND WATER TREATMENT FACILITIES, CONSTRUCTING AN ADDITIONAL FACILITY TO KEEP UP WITH CUSTOMER DEMAND AND LAUNCHING A RECYCLED WATER PROGRAM. IMPROVEMENTS WILL BE MADE AND CAN BE PAID FOR WITH CASH FROM HIGHER UPFRONT SEWER RATE INCREASES (UP TO 53%) OR FINANCED TO KEEP UPFRONT SEWER RATE INCREASES LOWER AND MORE AFFORDABLE.
SHALL THE CITY OF BOISE CITY, IDAHO BE AUTHORIZED TO KEEP UPFRONT SEWER CUSTOMER RATE INCREASES LOWER AND MORE AFFORDABLE BY ISSUING AND SELLING ONE OR MORE SERIES OF REVENUE BONDS UP TO $570,000,000 OVER THE NEXT 10 YEARS?
The following information is required by §34-913, Idaho Code: The purpose for which the City’s proposed bonds are to be used, the date of the special bond election (November 2, 2021), and the principal amount of the bonds are set forth above on the ballot or in the City’s bond election ordinance no. ORD-39-21.
- The interest rate anticipated on the proposed bonds based on current market rates is 2.49% per annum but will be fixed at time of each series issuance.
- The total amount to be repaid over the life of the proposed bonds based on the anticipated interest rate, is estimated to be $815,104,000, consisting of $570,000,000 in principal and $245,104,000 in interest.
- Principal and interest on the bonds are paid solely from the revenue of the City’s water renewal system, so the estimated average annual cost to the taxpayer on the proposed bond based on the data above is a tax of $0 per $100,000 of taxable assessed values.
- The bonds will mature over a period not to exceed thirty (30) years.
- The total existing indebtedness, including interest accrued as of November 2, 2021, of the City is $92,461,534.67.
- The total existing indebtedness of the water renewal fund, including interest accrued as of November 2, 2021, is $1,787,886.72.
IN FAVOR OF funding clean water improvements by issuing bonds for the purposes stated in ORD-39-21
AGAINST funding clean water improvements by issuing bonds for the purposes stated in ORD-39-21
Here’s a “Presentation” that was done by the City of Boise that discusses the issue:
A Discussion of the “Boise City Sewer District Bond – $570,000,000 of a Total $3,000,000,000 Total Replacement Cost” was done in Boise Dev on September 3, 2020. Here is the link: https://boisedev.com/news/2020/09/02/deep-dive-a-look-at-boises-proposal-for-the-future-of-waste-water/
Here’s a KTVB article from July 21, 2021 discussing the bond: https://www.msn.com/en-us/money/news/boise-sewer-bills-could-increase-by-53-next-year/ar-AAMnEMa