[Archived] City of Alexandria Receives Triple-A Bond Ratings; Agencies Cite Good Government and Sound Fiscal Practices

City Press Release


	City of Alexandria, Virginia Office of the City Manager Alexandria City Hall 301 King Street, Suite 3500 Alexandria, Virginia 22314-3211 www.alexandriava.gov Telephone: 703.838.4300 Fax : 703.838.6343

Moody’s Investors Service, Inc. and Standard & Poor’s credit rating agencies have reaffirmed the City of Alexandria’s double triple-A bond ratings, in conjunction with its issuance of $55 million in General Obligation Bonds.

Alexandria, which will sell the tax-exempt 20-year bonds tomorrow, remains only one of 29 cities in the United States with perfect bond ratings from the nation’s two leading municipal credit rating agencies. The City received the agencies’ highest ratings this week, following a top-to-bottom independent professional review of the City’s finances, economy and fiscal management.

Mayor Kerry J. Donley, City Manager Philip Sunderland and other City officials met with rating
agency officials in New York last week to provide officials with detailed information on the City’s fiscal health.

"This is really a report card that indicates the City is going in the right direction, with solid leadership from City Council, a policy of sound fiscal management, and good government that is generating a growing tax base," Mayor Donley said. "All of these factors have helped shape a strong local economy."

These double triple-A bond ratings allow the City to borrow money at very low, tax-exempt rates, in order to fund capital projects like new schools, roads, sewers and other City facilities. They also make it easier for the City to borrow additional monies for future long-term capital needs.

"We’ve managed to keep spending down and rely on new and innovative financing strategies," Sunderland said. "Alexandria’s conservative borrowing for capital projects and modest debt are considerably below the norm, even for triple-A jurisdictions in the D.C. metropolitan area."

In determining the City’s favorable bond ratings, Moody’s and S&P’s also cited several other factors including:
* A balanced tax base incorporating residential and commercial growth;
* Increasing tourism;
* Alexandria’s history of sound fiscal practices;
* Economic diversity;
* Low debt;
* Low unemployment;
* Presence of nearly 300 trade associations that provide jobs; and
* A growing number of technology firms that employ more than 10,000 people.

This year, the City’s official bond prospectus was made available through the City’s web site, and the bonds will be competitively bid on-line.

"Issuing the prospectus via the Internet and accepting bids on-line allows the City to reach a wider audience of potential bidders in the financial community more effectively," said Director of Financial and Information Technology Services Mark Jinks. "This is yet another step in the City’s overall plans to increase e-commerce opportunities in government."

The City received its first triple-A rating from Moody’s in 1986 and from S&P in 1991. These ratings were reaffirmed in 1994 and in 1999.