Article: Orange County city to test bond market; first since debacle. (Laguna Beach, California)

LOS ANGELES -- Laguna Beach, Calif., on Wednesday will become the first Orange County local government to sell municipal bonds since the county declared bankruptcy on Dec. 6.

The scenic oceanfront city in southern Orange County plans to sell $1.047 million of assessment bonds, and it will probably need to pay a premium to attract investors, a Laguna Beach official said.

"The bankruptcy will have an impact on the interest rate we pay -- no doubt about it," said Richard Hasenohrl, Laguna Beach finance officer. "To what degree, we don't know."

Observers said because of its modest size, the issue will have only limited usefulness as a barometer of market ...

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