Ringneck Energy says tax-free municipal bonds pose no risk for the city

In South Dakota, a hearing was held in Onida regarding the proposal for the city to issue $20 million in tax-free municipal bonds to help close the funding gap for Ringneck Energy’s proposed ethanol plant. The bonds would be of no risk to the city and would mostly be purchased by institutions investors in increments of $100,000 with 20 or 25 year terms, though they could be paid off or refinanced in less than 10 years. The city didn’t take a decision on the plan but held off doing so until the bonds are developed in about two months.