A Special Background Report On Trends in Industry And Finance
PUBLIC WORKS NEEDS, favorable rates spur a muni boom.</br></br>Water pipes explode with alarming regularity in New York City, highways and reservoirs are stressed in the West, and housing is a general problem. Falling interest rates prompt cities and states to issue more municipal bonds. "We feel interest rates are pretty favorable now for long-term debt," says Philip Shapiro, chief financial officer of the Massachusetts Water Resources Authority. New muni issues through September totaled $109.2 billion.</br></br>More issues are planned by year end and the 1990 calendar looks plump, too. New York City and state agencies plan to sell $3.05 billion of debt in the fourth quarter, up from $2.5 billion a year ago. The single biggest issuer: the medical facilities finance agency with nine issues totaling $848 million. Western officials say a fairly strong economy and compliant voters increase offerings. "We're catching up and taking care of a lot of things," says David Brodsly, a Los Angeles finance specialist.</br></br>The $7 billion cleanup of Boston Harbor gets under way with plans to issue $600-$750 million in debt in early 1990.</br></br>KICKING TIRES: 1990 car models draw oohs for style, gasps at the prices.