The City Council voted to hold a bond election on August 28, 1934, to determine whether the City should create a bonded indebtedness of $959,000 at 4% semi annual interest to construct 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 gen. the necessary funds to pay off the G.O. Bond payments. Private investors would purchase the bonds.