Arlington Refunds Bonds, Saves Taxpayers Millions
February 07, 2012
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County issues $106 million of refunding bonds at 2.15%
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$1.2 million saved in FY 2012, more than $9 million over life of bonds
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Debt service further reduced
ARLINGTON, Va. – On February 7, 2012, Arlington County issued $106 million of refunding bonds at an average interest rate of 2.15%. The unprecedented decline in interest rates over the past few months has provided an opportunity to further reduce the County’s outstanding debt service, generating substantial savings for the County and Schools.
On a net present value basis, this refunding will generate $1.2 million in savings in FY 2012, and more than $9 million over the life of the bonds. The bonds were issued in a negotiated sale with Citigroup as lead underwriter.
“The current interest rate environment continues to provide excellent opportunities for the County to reduce its overall debt burden” said County Manager Barbara Donnellan. “We aggressively monitor the market, and have completed four refunding transactions over the last three years. On a net present value basis, this has saved the County more than $16 million dollars in debt service spread over the next 20 years.”
Triple Aaa bond rating helped secure low rates
As part of this bond sale, the three bond rating agencies confirmed the County’s Aaa/AAA/AAA ratings; the County is one of only 39 counties in the United States to currently hold this distinction. Recently, Moody’s placed the County and other triple-Aaa-rated jurisdictions on negative watch due to issues related to the federal debt limit and the potential impact on Arlington and other local governments.
For more information on Arlington County bonds, please visit the County Website.
Arlington, Va., is a world-class residential, business and tourist location that was originally part of the "10 miles square" parcel of land surveyed in 1791 to be the Nation's Capital. It is the geographically smallest self-governing county in the United States, occupying slightly less than 26 square miles. Arlington maintains a rich variety of stable neighborhoods, quality schools and enlightened land use, and received the Environmental Protection Agency's highest award for "Smart Growth" in 2002. Home to some of the most influential organizations in the world - including the Pentagon - Arlington stands out as one of America's preeminent places to live, visit and do business.
