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Article: Rising interest rates penalize government bond issues.
- Article from:
- Los Angeles Business Journal
- Article date:
- May 30, 1994
- Author:
CopyrightCOPYRIGHT 1994 CBJ, L.P. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Local government agencies that have postponed selling bonds for infrastructure improvements are being clobbered by rising interest rates, and in some cases may have millions less to spend on construction projects.
Rising construction costs since the Northridge earthquake, plus inflation, only exacerbate the problem, said government officials.
In the case of the City of Los Angeles, City Controller Rick Tuttle has been complaining for two years that needed programs, for which bond sales have been approved by voters, have been inexcusably delayed. The total on unsold city bonds was estimated by Tuttle a month ago at nearly $1 billion, some of which were approved ...