Management & Finance
Bonds
2010 General Obligation Bond Information
July 29, 2010 - On July 26-29, the County issued $139.5 million of it's 2010 General Obligation Public Improvement and Refunding Bonds. Of this, $73.415 million was issued for new projects at an overall interest rate of 2.80 percent, the lowest on record for the County. The remaining $66.13 million was issued to refund previously issued bonds for an overall savings of over $3 million over the life of the bond issue, and savings of over $400,000 in Fiscal Year 2011.
This year’s bond sale was unique in that the County utilized both traditional tax-exempt bonds, as well as the new Build America Bonds (BABS) that have become a popular and beneficial form of financing for state and local governments. BABs, unlike tax exempt bonds, are taxable and subject to both state of federal taxation. The County instead receives a 35% subsidy on these bonds, providing lower overall interest rates when compared to tax-exempt bonds. By utilizing a mix of both forms of financing, the County ultimately saved taxpayer dollars by reducing our interest costs.
The $73.4 million in new money bonds was sold to finance new projects, including:
- Arlington Public Schools projects, including Yorktown High School construction
- Completion of Neighborhood Conservation Projects
- Improvements to the Water Pollution Control Plant
- Metro improvements
June 15, 2010 - the County Board authorized the issuance of up to $223.5 million of General Obligation Public Improvement and Refunding Bonds in fiscal year 2011. Of this, $73.4 million will be new money bonds, while up to $150 million is authorized for the refunding of existing debt. Pursuant to the County's debt management policies, any bond refunding will have a minimum aggregate present value savings of 3% of the refunded bond principal amount. The County will continue to actively monitor the municipal markets throughout FY 2011 and will evaluate any refinancing opportunities that may develop.
For more information, please contact Jason Friess in the Department of Management & Finance.
Arlington’s 2010 Triple-Aaa Bond Rating
In 2010, for the tenth consecutive year, Standard & Poor's, Fitch Ratings, and Moody's Investor Services have all rated Arlington County’s debt AAA/AAA/Aaa. Arlington is one of only 35 counties in the United States to carry the coveted triple-A bond rating from all three rating agencies. See the press release>>>
2009 General Obligation Bond Information
