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

DATE: WEDNESDAY, January 19, 1994                   TAG: 9401190201
SECTION: VIRGINIA                    PAGE: C-1   EDITION: METRO 
SOURCE: JOEL TURNER STAFF WRITER
DATELINE:                                 LENGTH: Medium

ROANOKE GETS LOW BOND RATE

City taxpayers will save $6 million in the next 30 years because of a record low interest rate on a $35.8 million bond issue.

The winning bid on the bonds was 5.06 percent, which is 1.04 percentage point below the rate on city's last bonds, sold in 1992.

Finance Director James Grisso was elated, saying the low rate shows investor confidence in the city in addition to producing huge savings for taxpayers.

The low bid was submitted by Kidder, Peabody and Co., a New York investment company, and a syndicate of banks and investment firms.

The low rate confirmed recent assessments by independent, national rating firms that Roanoke has a diverse economic base, good financial management and a stable outlook, Grisso said.

City Council accepted the low bid at a special meeting. The six bids ranged from 5.06 percent to 5.24 percent, rounded to the nearest hundredth.

It was the city's first bond issue since Mayor David Bowers took office and Grisso became finance director.

Bowers credited Grisso and City Manager Bob Herbert with helping the city retain its double-A bond rating during tough economic conditions and a transition in financial management with the departure of Joel Schlanger, the former finance director.

"You have done your jobs," Bower told Grisso and Herbert.

Councilman William White said the city kept its rating because council and administrators have closely monitored finances.

"It didn't just happen. I want to commend you," White said.

Councilman John Edwards said the bond issue represents an investment in the future of Roanoke and the Roanoke Valley.

The bond issue includes funds for these projects:

$13.8 million for the Hotel Roanoke conference center. Construction will begin soon and should be complete by March 1995.

4.8 million for the Roanoke Jail annex. Construction, to begin this summer, should be complete during 1995.

$1.5 million for the Juvenile Detention Home expansion. Work is scheduled to start by late summer and finish during 1995.

$15.7 million for Sewage Treatment Plant expansion. There is no firm schedule, but the project is expected to be finished within three years.

Even with the additional $35.8 million in bonds, the city will remain far below its debt limit of $300 million.

The city's bonded debt is $88 million. This includes $30 million for improvements to the water system and $8 million for parking facilities, which will be repaid with special fees.