Wednesday, March 10, 2010

Detroit Plans Deficit-Easing Debt

The City of Detroit will go to Wall Street tomorrow as they look to sell $250 million in new debt.

The good news is that this bond offering will keep the City of Detroit from running out of cash in the short term.

The bad news is that it adds an addition $1.5 million per year in interest payments that will have to come out of our general fund. This, in turn, leaves less money available for police and fire protection, working street lights, and all of the other public services that people in other communities take for granted.

Detroit Plans Deficit-Easing Debt - Bond Buyer Article

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