THE VIRGINIAN-PILOT 
              Copyright (c) 1996, Landmark Communications, Inc.

DATE: Sunday, February 4, 1996               TAG: 9602020196
SECTION: PORTSMOUTH CURRENTS      PAGE: 08   EDITION: FINAL 
                                             LENGTH: Short :   28 lines

$53 MILLION IN BONDS SOLD CITY COUNCIL PLEASED WITH LOWEST INTEREST RATE IN 20 YEARS.

The city approved a $53 million bond issue last Wednesday at the lowest bond rate Portsmouth has paid in 20 years.

City Council unanimously accepted a low bid of 5.0153 from Paine Webber for the general obligation bonds.

``It's the lowest interest rate paid by the city since 1976,'' Deputy City Manager Johnna Whitaker said. In addition, she was pleased that seven companies bid on the bonds.

The number of people bidding and the low interest rates reflect the opinion of the city's financial condition, Whitaker said.

Most of the money will provide long-term financing for a new I.C. Norcom High School. About $13,000 will be used for the city's water treatment plant, drainage projects and other capital programs of the Public Utilities Department. by CNB