Competitive Sewer Bond Sale to Save Fairfax County $10.648 Million
April 3, 2014
Fairfax County received a low 2.459 percent interest rate for the sale of Sewer Revenue Refunding Bonds, Series 2014, on Tuesday, April 1. The competitive sale was for $61.755 million to Citigroup Global Markets. The bond sale generated debt service cost savings totaling $10.648 million, or $1 million annually. The Series 2014 bond refunded the Series 2004, originally issued in October 2004.
The bond sale will support capital improvement projects at the county’s wastewater treatment plants, as required by the Virginia Department of Environmental Quality. Fairfax County has one of the nation’s largest sanitary sewer systems, covering nearly 234 square miles.
There were 10 bidders for the bond sale, which indicates the financial market’s continuing strong support of the county’s bond offerings. Prior to the sale, the county requested bond ratings from the three rating agencies. Standard and Poor’s Corporation and Fitch Ratings each affirmed their AAA bond ratings. Moody’s Investors Service also affirmed the Aa1 rating (one notch below AAA), and revised their outlook from stable to positive based on the strong financial performance of the Sewer Fund.
Wastewater management costs are not included in the county’s general fund budget. More information on wastewater management in Fairfax County.