Arcadia : Bond Option for 3 Projects
The City Council on Tuesday voted 4 to 1 to leave the door open to borrowing as much as $11 million through a bond issue to pay for expansion of the library and build of a fire station and public parking lot.
Mayor George Fasching said Arcadia has money in its reserves to pay for the projects. But he said financiers have advised that if the rate on city investments exceeds the rate the city would pay for tax-exempt bonds, Arcadia could make a profit by issuing bonds.
“This is just an option. We’re not obligated to anything,” he said.
Dissenting Councilman Robert C. Harbicht said it is unnecessary for a city with large financial reserves that are usually invested conservatively to make speculative investments.
This year, the city plans to expand the library at 20 West Duarte Road, build a second fire station on Baldwin Avenue and a public parking lot on Huntington Drive.
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