Mobile, Ala., Area Water and Sewer System sold $105 million in bonds to finance extensive modernization of its infrastructure, but one official says paying for the debt on the bonds could cut its capital fund in half. It will cost the system $233 million to repay the bond, and from 2008 to 2018 it will be paying $22 million a year on the debt, which is 31 percent of its current annual revenue, according to the Mobile Press Register. While the debt may cut the capital fund for future infrastructure projects from $10 million a year to $5 million a year, officials say the improvements that are being funded by the bond will reduce the need for future improvements.

http://www.al.com/news/