Fairfax County Receives 2.84 Percent Interest Rate on Bond Sale
Jan. 24, 2014
- Sale validates Fairfax County's responsible management and fiscal stewardship.
- Bonds sold at the low interest rate of 2.84 percent.
- Sale included voter approved Series 2014A General Obligation Bonds.
Fairfax County received a low 2.84 percent interest rate for the General Obligation Bond Sale for the Series 2014A held Thursday, Jan. 23. The competitive sale was for $316.31 million to Citigroup Global Markets. There were five bidders, indicating strong support of the 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 AAA rating. Moody’s placed the county on negative outlook due to concerns about reserve balances and pension liability funding. The county disagreed with Moody’s assignment of the negative outlook as it ignored the county’s strong fiscal management and the strength of its tax base.
“I am very pleased by the county's successful bond sale at such a low interest rate. This is a real validation of Fairfax County's responsible management and fiscal stewardship,” said Sharon Bulova, chairman of the Board of Supervisors. “Despite a 'negative outlook' ascribed by Moody's, Fairfax County's Triple AAA bond rating continues to save the county money when we issue debt to take care of our school and county infrastructure.”
Voters approved authorization for the sale of the Series 2014A bonds in elections held from 2004 to 2012. These bonds total $289.64 million to fund the following areas:
- Schools $161 million ($155 million for school improvement projects and $6 million for the Newington bus garage per the 2007 School Bond Referendum)
- Transportation improvements and facilities $59.5 million
- Public safety facilities $50 million
- Parks and park facilities $13 million
- Public library facilities $6.14 million
The Series 2014A also included refunding bonds that generated net present value savings of $4.38 million or 8.05 percent of the refunded bonds.
As a result of its Triple AAA bond rating, Fairfax County has saved an estimated $631.08 million from county bond and refunding sales.
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