SALEM TO SAVE $20,494 WITH $2.5 MILLION LOAN

                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: THURSDAY, January 16, 1992                   TAG: 9201170474
SECTION: NEIGHBORS                    PAGE: W-8   EDITION: METRO 
SOURCE: LESLIE TAYLOR
DATELINE:                                 LENGTH: Short
SALEM TO SAVE $20,494 WITH $2.5 MILLION LOAN
Borrowing money to save money?
That's what Salem City Council did when it voted Monday to borrow $2.5 million in lieu of anticipated tax collections in June.
The low bid for the loan came from First Virginia Bank in Falls Church, which offered an interest rate of 3.375 percent.
The city will pay $34,922 in interest on the loan. But that's $20,494 less than the interest the city would lose if, instead of taking out a loan, it cashed in reserve fund certificates of deposit.
Those certificates of deposit are earning 4 to 6 percent interest.
The loan is to be repaid by June 30, the end of the current fiscal year.

by Archana Subramaniam by CNB