City officials have been in discussions with the city financial advisor regarding the possible future selling and issuance of $2 million worth of bonds for the financing of street improvements, street maintenance, and to repair all worn and damaged city streets in need of such.
“We will be doing a massive pavement and re-pavement program, and rehabilitation and repairs for the city streets,” said City Administrator Larry Pippen. “We’ve divided the city into four quadrants. We’re going to look at each quadrant and estimate the cost of each quadrant, and estimate where the order of priorities are going to be for the city street repairs.”
The City plans to sell the $2 million worth of bonds to various interested investors and is open to anyone who is interested in investing. The city financial advisor will handle the bonds to be sold. The bonds will probably be sold in increments of $5,000, according to Pippen, and have an estimated interest rate of approximately four percent. The city will pay back investors on a an annual and semi-annual basis.
“They’re investing their money into a security or bond from the city, and the city is guaranteed to repay. The interest that investors earn on the amount of money invested is tax-free. It is one of the most profitable issues that investors can invest in. Whatever the interest rate is, it is tax-free because the city is a non-profit organization, so a lot of people like those kinds of bonds for that simple reason.”
The city council still must approve the bond plans, and an approval won’t be made until after January 1. Public hearings are planned for the near future so that the discussions can be made with citizens. More information will be forthcoming and will be made public as plans develop and are approved.