Road repairs will begin soon in Provo now that the City Council has awarded the sale of $4 million in general-obligation road bonds to a Chicago firm.
Harris Trust and Savings, one of 11 investment dealers and banks from throughout the United States to enter bids, offered to buy the bonds for 12 years at 6.87 percent interest.Mayor Joe Jenkins said the low interest pleasantly surprised city officials, who expected interest to be above 7 percent.
The bid award confirms the sale and allows the city to prepare for its third year of road construction, Jenkins said.
The first phase of road repairs began in 1987 when $4 million of $8 million was issued by the council. The latest issuance will complete the repair project.
In November 1986, voters passed the bond election and approved paying more property taxes to fund street improvements. The Series 1989 general-obligation bonds sale is the final step to better roads in Provo.