KING CITY BOND PAYMENTS VS

KING CITY LEADERS (FACING A MAJOR FINANCIAL CRISIS) PLAN TO BORROW MONEY FROM RESERVES TO BE ABLE TO MAKE A BOND PAYMENT WEDNESDAY. IN DEEP FINANCIAL TROUBLE THE CITY NEED'S TO MAKE A 15 MILLION DOLLAR PAYMENT TO HOLDERS OF CITY REDEVELOPMENT BONDS. BY MAKING PAYMENTS THE CITY WOULD NOT DEFAULT ON THEIR OBLIGATIONS AND AVOID A POSSIBLE LAWSUIT BY SHAREHOLDERS. CITY OFFICIALS SAY THEY WILL USE THE REDEVELOPMENT RESERVES TO COVER THE NEXT TWO BOND SHAREHOLDER PAYMENTS, SINCE AT THIS TIME ALL REDEVELOPMENT PROJECTS ARE ON HOLD. IN FACT IN ORDER TO RAISE MORE MONEY, KING CITY IS EXPECTED TO SELL PROPERTY OWNED BY ITS REDEVELOPMENT AGENCY.