DATE: Tuesday, November 25, 1997            TAG: 9711250567

SECTION: LOCAL                   PAGE: B5   EDITION: FINAL 
SOURCE: BY TERRI WILLIAMS, STAFF WRITER 

DATELINE: PORTSMOUTH                        LENGTH:   48 lines

CITY INVITES PUBLIC INPUT ON $22 MILLION BOND ISSUE PLAN

The City Council will hold a public hearing tonight to get citizens' ideas on a proposal to issue about $22 million in public improvement bonds.

None of the projects are new.

``Everything here Council has already approved,'' explained Johnna R. Whitaker, the city's deputy manager for finance. ``What we've done is consolidated everything.''

Although the council has already authorized the issuance of the bonds, officials want to get public input before going to market next month.

Whitaker will release details today on how the money would be spent. However, the agenda shows the following categories:

$4.4 million for drainage and street improvements;

$938,878 for schools;

$9.1 million for industrial and economic development;

$2.3 million for leisure services ;

$1.8 million for public safety;

$3.2 million for municipal facilities.

Five years ago, the city issued public improvement and public utility bonds, which helped pay for capital projects. Portions of those bonds may be put back on the market because interest rates have decreased, Whitaker said.

The city was able to refinance School Board debt at a better interest rate from the Virginia Retirement System. The city borrowed at below 7 percent, and they now have 20 years instead of 30 to repay VRS, Whitaker said.

The refinancing will save the city $8 million in cash, she said.

``The market had not been favorable previously,'' Whitaker said. ``We've been watching it for the past two years and decided to take advantage of it.''

In addition, Portsmouth schools are expected to get $5 million in the next few weeks from the state's Literary Fund, a subsidy that assists localities with low-interest loans. Instead of using the bond money earmarked to complete the new I.C. Norcom High School, the city will use the Literary Fund monies.

The $5 million that's now been freed up will be used to pay for the redevelopment of Fairwood Homes. The city plans to demolish much of the housing community to make way for improvements at nearby Bide-A-Wee Golf course. ILLUSTRATION: Graphic

WANT TO GO?

What: Public hearing on $22 million public improvement bonds

When: Tonight, 7 p.m.

Where: 801 Crawford St.

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