The City Council voted to hold a bond election on Aug. 28, 1934 to determine whether the city should create a bonded indebtedness of $959,000 at 4% semi annual interest constr. The proposed Mad River Water System. The $959,000 is a federal loan and the city has been awarded a grant by PWA* of $318,000. the loan is the general obligation bond and is backed by a condition that taxes could be increased if general tax revenues don't generate the necessary $ to pay off the G.O. Bond payments. Private investors would purchase the bonds.