Hurricane-Ravaged Homestead to Sell Bonds

The municipal bond market is coming to the aid of hurricane-battered Homestead, Fla.

With most of its police cars wrecked, two electrical generators out and uncounted millions in uninsured storm damage, the south Florida city plans to sell up to $10 million in short-term notes this month to help meet expenses.

Payments on the bonds will be met by anticipated money from the federal government, which has promised to cover nearly all state and local costs in Florida for uninsured damage associated with Hurricane Andrew.

But payments from the Federal Emergency Management Agency aren’t expected to arrive for at least another 90 days. Meanwhile, Homestead is shelling out $600,000 for a debris removal contract and anticipates losing at least $3 million in tax revenue in September alone.