- Bonds to finance County, Schools projects
- Up to $200 million of bonds to be refunded for savings
- $36 million+ saved since 2009
The Arlington County Board today approved the sale of Series 2017 General Obligation (GO) Public Improvement & Refunding Bonds. These are long-term bonds, approved by voters, which the County uses to finance major capital projects. Proceeds of the sale will finance a range of County capital projects, including:
- Neighborhood Conservation
- Parks Land Acquisition
- Maintenance Capital
- Lubber Run Community Center Planning
- Nauck Village Center Action Plan
- Transportation Projects
- Arlington Public Schools projects
Depending on market conditions at the time of the sale in May, proceeds may also refund up to $200 million of previously issued bonds for debt service savings.
“For many years now, Arlington has been able to take advantage of very low interest rates to make critical investments in infrastructure,” Arlington County Board Chair Jay Fisette said. “I am confident that, once again, the County’s taxpayers will benefit from Arlington’s stellar bond rating and achieve the best interest rates possible when we sell these voter-authorized bonds later this month.”
The Board voted 5 to 0 to approve the Bond sale and the refinancing of existing bonds to take advantage of debt service savings in the current environment of low interest rates. Read the staff report; scroll down to Item No. 19.
The Board’s authorization of up to $200 million of refunding bonds will extend until June 30, 2018 to give the County maximum timing flexibility to achieve the lowest possible interest rate should market conditions allow a refunding opportunity. Since 2009, unprecedented low interest rates have allowed the County to refinance more than $590 million of County, Schools and Utilities Fund general obligation debt – saving Arlington taxpayers more than $36 million.
Read the staff report for this item. Scroll down to Item #19 on the Agenda for the Saturday, May 20 County Board Meeting.
The bonds are expected to be sold on a competitive basis on or around May 31, 2017. Under the competitive sale process, the underwriters for this year’s sale will be known after the sale concludes and the lowest qualifying bidder or syndicate is awarded the bonds.
The County’s existing bonds have a triple-AAA rating from Moody’s, Standard & Poor’s, and Fitch. Ratings for this year’s bond sale are expected to be received on or around May 23, 2017. Read more information about bonds.