The state Board of Regents approved a resolution by the University of Iowa authorizing the sale of $25 million in utility system revenue bonds on Wednesday.

The proceeds from the sale will fund improvements to the UI’s utility system that encompasses a main power plant to replace the dense-phase coal handling system, health sciences utility and service tunnel, and installing Boiler 10 Natural Gas Burners. The system is a self-supporting mechanism.

The bonds would be returned over a period of 25 years, and the total paid back annually would be almost $1.5 million. Interest would be double tax-exempt for Iowa residents who purchase bonds.

Seven bids have currently been placed for the bonds.

— by Asmaa Elkurti