Toledo officials are more confident —— after the sale of $18.7 million in short-term notes for capital projects — that the city will weather the financial crisis and deterioration in credit markets better than some other cities across the nation.
The sale comes at a time when states and cities have delayed major improvements and scrambled to adjust plans in the wake of the credit freeze that has reduced the number of buyers of municipal securities. The $2.6 trillion market for state and city bonds has been frozen since the collapse of Lehman Brothers last month. 'A lot of the municipalities are having problems because they are in a variable-rate environment and they can see the variable rate double overnight,'
Toledo's finance director, John Sherburne, said. 'If you have gone from 5 percent to 7 or 8 percent, that reduces the amount you have to do projects with.'