[Archived] City Of Alexandria Receives Triple-A Bond Ratings

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

FOR IMMEDIATE RELEASE: TUESDAY, JUNE 26, 2001
CONTACT: MARK JINKS, ASSISTANT CITY MANAGER (703) 838-4300

CITY OF ALEXANDRIA RECEIVES TRIPLE-A BOND RATINGS
AGENCIES CITE POSITIVE LOCAL ECONOMIC PICTURE, STRONG MANAGEMENT, AND SOUND FISCAL PRACTICES

Moody’s Investors Services, Inc. and Standard & Poor’s credit rating agencies have reaffirmed the City of Alexandria’s double triple-A bond ratings, in conjunction with its planned issuance of $54.5 million in General Obligation Bonds.

Alexandria, which is scheduled to sell the tax-exempt 20-year serial bonds on July 10, 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, 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 recently met with rating agency officials in New York City to provide detailed information on the City.

“The reaffirmation by the credit rating agencies of the City’s bond ratings is recognition of the City’s significant ongoing achievements in economic development, the strength of the local economy, our good government practices, as well as the City’s careful and prudent stewardship of public funds,” Mayor Donley said. “All of these factors are important to the bond rating agencies."

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 school renewals and expansions, roads, sewers and other City facilities.

“We’ve met increasing community and educational needs and invested in our City and School infrastructure, while keeping our debt burdens low,” City Manager Sunderland said. “Alexandria’s healthy use of cash to finance two-thirds of its capital projects has kept our bonded debt 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:

* The strength of the Washington region economy;
* The continued growth in the tax base;
* The future economic impact of the relocation of the U.S. Patent and Trademark Office and development of Potomac Yard;
* City Council established sound financial policy guidelines;
* City management in the forefront of management practices; and
* Conservative debt issuance guidelines.

Given the success last year, the City’s official bond prospectus will again be made available online through the City’s web site (www.ci.alexandria.va.us), and the bonds will be competitively bid online.

“Issuing the prospectus via the Internet and accepting bids online has allowed the City to reach a wider audience of potential bidders in the financial community more effectively,” said Assistant City Manager Mark Jinks. “This is another example of how we are using the Internet to the City’s advantage.”

The City received its first triple-A rating from Moody’s in 1986 and from S&P’s in 1992. These ratings were reaffirmed in 1994, 1999 and last year.