Finance News

p>On July 10 the city of Winston-Salem will put on sale $44 million in limited obligation bonds to raise money to finance the first phase of relocation to the new City Yard and to fund the city’s pension fund for police officers.

The bonds will be sold through Bank of America, Robert W. Baird & Co. and Stephens Inc. City officials expect the bonds to be sold within a week. Citizens interested in buying the bonds should contact their broker before the bonds go on sale. Citizens may also directly contact the selling organizations.

Limited obligation bonds are backed by the general revenues of the city.

The bond sale will raise $14 million to finance relocation of the city’s Sanitation Division field operations, Engineering Field Office, Employee Medical and Employee Training operations to the new City Yard on Lowery Street. The Salem Creek Connector, scheduled to begin construction in December, will cut through the middle of the existing City Yard on Rams Drive.

The remaining $30 million in bonds will help the city fully fund its pension fund for police officers. Because of historically low interest rates, the city can sell the bonds at a lower rate than what the pension fund has earned over the past ten years. City finance officials estimate that the increased funding for the pension plan should save the city about $700,000 a year.

 

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