Boortz47 via Flickr
OAKLAND, Calif.—More trouble is brewing in California as the City of Oakland looks to issue $211 million in municipal bonds to fill a $426 million shortfall in pension funding, according to the The Wall Street Journal.
The municipal bond sale is scheduled for Thursday and will cover approximately 70 percent of the contributions the city is required to make towards the Oakland Police and Fire Retirement System.
Oakland officials told the Wall Street Journal the increased borrowing would cover the required contributions for the coming years while giving the city an opportunity to recover financially from the recession.
Experts say the city won’t have problems finding buyers, but they will demand higher interest rates due to increased risk.
"Folks who can make this kind of contribution from their operating budget generally do not borrow the money to do it," Michael Brooks, senior portfolio manager at AllianceBernstein, told the Wall Street Journal. "If they're borrowing the money, it's a sign that they have a weakness in their finances."
- NYC premiere of Rogen film 'The Interview'...
- Groups launch lawsuit over Tesoro refinery plan
- How grandparents can save for their...
- Amazon does not have to pay workers for time...
- Russians rush to stores to pre-empt price rises
- Randy Shumway: One solution for air...
- Can't buy me love: How to give your partner...
- PacifiCorp to close Deer Creek Mine in 2015
- NYC premiere of Rogen film 'The... 7
- Is brand loyalty the new religion? 6
- Biggest mailing day of the year means... 5
- Wells Fargo providing $15K grants to... 4
- Insurers ease 'Obamacare' deadline 3
- Keystone pipeline to top Senate agenda... 3
- AP sources: NFL employees turn over... 3
- US consumer prices fall in November 3