Wilmington Will Go to the Bond Market for a $43 Million Issue
The City will borrow money to fund numerous approved projects from the Fiscal Year 2016 Capital Budget including money for parks, fire stations, police headquarters, road resurfacing, transportation initiatives, and water and sewer improvements
The City of Wilmington will soon issue $43 million in bonds, the proceeds from which will fund dozens of government projects that were originally approved in the Fiscal Year 2016 Capital Budget. The City traditionally goes to the bond market every two years to borrow money for approved capital projects. The repayment of the money that is borrowed is reflected in the City’s annual debt service, which is contained in the City’s annual budget. The City is expected to issue these bonds next month.
“Ongoing government programs and services that are delivered to citizens each year, and the personnel costs associated with those services, are funded in large part by taxes and fees,” said Mayor Mike Purzycki. “But governments also routinely issue bonds to have funding available for large infrastructure projects and capital purchases that are too expensive or are of a longer duration to be funded through normal revenue raising options. Wilmington will seek the best rate possible on this bond sale to minimize the repayment of the proceeds, which will occur over the next 20 years.”
The Mayor said the City will borrow just over $19 million for projects already approved in the General Fund and $24 million for projects approved in the City’s Water and Sewer Fund, for a total of approximately $43 million.
General Fund projects to be funded include new fire apparatus, building improvements to the City’s fire stations and police headquarters, park, playground and athletic field improvements, street paving, sidewalk and curb construction, as well as matching funding required to receive state funding for various transportation and traffic projects. Water and Sewer Fund projects to be funded include improvements to the City’s water filtration plants and pumping stations, improvements at the waste water treatment plant, funding for Wilmington’s Urban Forestry Management Program and enhancements to the stormwater mitigation system, which supports the City’s green infrastructure goals.
The following charts outline the various projects that will be funded from the planned bond issuance.
On the Water/Sewer chart, some of the projects listed are being funded through the State Revolving Fund, or SRF, which are federal dollars that the state loans to local municipalities at low interest rates and with minimal closing costs.
News and information from the Office of Wilmington Mayor Mike Purzycki
Deputy Chief of Staff for Policy and Communications
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Paul Ford Jr.
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