Fairfax County Sells Bonds at Historically Low Rate
January 20, 2012 – Fairfax County this week sold general obligation bonds at its lowest rate in recent history, presenting the County with significant savings opportunities. While Fairfax County typically sells well below the Bond Buyer Index, the 2.43 percent rate for this week’s sale surpassed expectations.
“As a result of our AAA bond rating and sound fiscal policies, we are able to attract investors looking for a safe, low-interest alternative to more risky high interest bonds,” Board Chairman Sharon Bulova said. “I am proud that Fairfax County continues to be a safe place to invest, and am glad the ratings agencies agree.” In the ratings reports for the bonds, the county’s overall financial condition and debt management were highlighted as strengths by all three rating agencies.
The General Obligation bonds sold on Jan. 18 total $240.35 million (includes sale amount and bond premium) and will fund schools ($167.3 million), transportation ($56.8 million), and parks ($16.25 million). Fairfax County voters approved the sale through referenda between 2004 and 2010.
On Jan. 19, Fairfax County also conducted a first-time negotiated General Obligation Refunding Bond Sale in the amount of $192.36 million and will save $24.66 million over the life of the bonds.
“Our Board will begin the formal budget process next month. We will continue the responsible fiscal stewardship that has guided us through the worst economic downturn in history, and will continue to look for ways to emerge even stronger,” Chairman Bulova said.
For more information on the bond sales, view the County’s release at: http://www.fairfaxcounty.gov/news/2012/updates/county-sells-bonds-jan.-19.htm