The City of Wilmington will issue $43 million in bonds.
Proceeds 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 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 about$43 million.
General Fund projects to be funded include new fire equipment, 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 water filtration plants and pumping stations, improvements at the wastewater 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.