The Lehigh County Authority would finance the $220 million it bid for the Allentown, Pa., water-and-sewer concession through low interest, tax-exempt bonds over 30 years, according to its general manager.

Aurel Arndt told the City Council Monday night that the agency would finance the bonds based on revenues generated in the first 30 years of the 50-year agreement. The longer-term financing period, said Arndt, enables the authority to lock in a low rate to reduce borrowing costs.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.