2010 General Obligation Bond Sales
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
To access market data related to this bond issuance, please visit the EMMA website.
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.