REFINANCE OF KEY LAND LOANS TO CONSOLIDATE DEBT
In 2010, the Ketchum Urban Renewal Agency sold bonds to refinance three separate loans; two of these loans were used to purchase property at 491 Sun Valley Road and 211 East First Street and the third loan was used to finance a portion of the 4th Street Heritage Project. Consolidation of these loans through the 2010 bond sale resulted in a manageable repayment schedule at a competitive interest rate. The 2010 bonds will be paid off in 2034.
DEBT SERVICE FUND
The purpose of the Debt Service Fund is to facilitate annual principle and interest payments on the KURA’s 2010 bonds. The fund also includes a reserve account, in compliance with the bond sales agreement, to secure scheduled payments in the unlikely event that the KURA’s traditional revenue streams are disrupted. An additional reserve is held in bank escrow for the same purpose. The bond reserves cannot be used for any other purpose until the agency’s debt is paid off.
For more information on municipal bonds, visit the Municipal Securities Rulemaking Board website.