On September 7, the City of Alexandria completed refinancing of $113 million of outstanding City general obligation bonds to lower interest rates. The new bonds were rated AAA/Aaa by Standard & Poor’s and Moody’s Investors Service and were sold at a very low overall 1.935 percent true interest cost — one of the lowest rates ever achieved by the City. The transaction consisted of $68.5 million of outstanding tax exempt debt from four separate issuances since 2008 and $44.5 million of Build America Bonds from 2009.
“Periodically, the City’s outstanding debt is reviewed by our Finance Department and outside financial advisors to ensure we are minimizing our borrowing costs for City government and school capital projects by taking advantage of ongoing low interest rates in the bond market,” said City Manager Mark B. Jinks. “This significant savings will help reduce pressure on the City’s budget in the coming years by lowering projected debt service costs.”
The refinancing will save City taxpayers approximately $10.6 million over the life of the bonds, including $1.5 million in both fiscal years 2019 and 2020.