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CITY OF DETROIT COMPLETES SALE OF DEFICIT FUNDING BONDS

 CITY OF DETROIT COMPLETES SALE OF DEFICIT FUNDING BONDS
 DETROIT, Aug. 13 /PRNewswire/ -- Mayor Coleman A. Young said the


city of Detroit completed the sale today of $106 million in deficit funding bonds to cover the city's deficit from fiscal 1991-92.
 After the sale was completed, the city completed payments totaling more than $74 million to the Police and Fire Pension Fund that were due on June 30.
 The mayor said the bond issue sold for interest rates ranging from 4 5/8 percent for the bonds maturing in 1994 to 5 5/8 percent for the bonds maturing in 1997.
 "These are very good interest rates that show a confidence of investors in the city's ability to pay off the bonds," the mayor said. "This successful sale at favorable interest rates means that our budget stabilization plan is working and is on track."
 The sale of the deficit bonds was recommended by the Mayor's Committee for the 21st Century as a means of spreading the city's deficit over a five-year period. The sale was recommended in addition to other changes to keep the budget in balance. The mayor included the proposal to sell the bonds in his budget and the sale was approved by the City Council.
 The bonds totaled $106,915,000.
 The payment to the Police and Fire Pension Fund totaled $74,793,798.01, which included the original payment of $74,115,911.55 that was due June 30, plus interest totaling $677,886.46.
 -0- 8/13/92
 /CONTACT: Robert Berg of the mayor's office, 313-224-1544/ CO: City of Detroit ST: Michigan IN: SU:


JG -- DE016 -- 9648 08/13/92 12:46 EDT
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Publication:PR Newswire
Date:Aug 13, 1992
Words:278
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