Fairfax County Receives 2.23 Percent Interest Rate on Bond Sale
Jan. 15, 2013
Fairfax County received a 2.23 percent interest rate, one of the lowest interest rates recorded in recent county history, for the General Obligation Bond Sale for Series 2013A and Series 2013B held Wednesday, Jan. 9. The competitive sale was for $334.34 million to JP Morgan Securities. There were four bidders, the second lowest bid was 2.26 percent. The number of bids and close proximity of the bids indicate strong support of Fairfax County’s bond offerings.
The three ratings agencies, Standard and Poor’s Corporation, Moody’s Investors Service and Fitch Ratings, affirmed the county’s triple-A rating. Moody’s noted these ratings “reflect the county’s satisfactory financial position supported by strong management practices, large tax base with socioeconomic indices that are well above average and reasonable debt burden with manageable future borrowing plans.” However, Moody’s did retain its "negative outlook" placed on the county due to Fairfax County’s economic relationship with the federal government.
Voters approved authorization for the sale of the Series 2013A bonds in elections held from 2004 to 2012. These bonds total $249.23 million (including sale amount and bond premium) to fund the following areas:
- Schools - $169 million ($155 million for school improvement projects and $14 million for the Newington bus garage).
- Transportation improvements and facilities - $61.23 million.
- Parks and parks facilities - $19 million.
The Series 2013B refunding bonds total $128 million. The sale generated net present value savings of $12.21 million or 9.49 percent of the refunded bonds. The savings are spread over the life of the refunding bonds through Fiscal Year 2026.
As a result of its excellent triple-A bond rating, Fairfax County has saved an estimated $580.63 million from county bond and refunding sales.