[Archived] City Of Alexandria Sells $54.5 Million In General Obligation Bonds

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

MEDIA ADVISORY

FOR IMMEDIATE RELEASE: TUESDAY, JULY 10, 2001
CONTACT: MARK JINKS, ASSISTANT CITY MANAGER FOR FISCAL AND FINANCIAL AFFAIRS (703) 838-4300

CITY OF ALEXANDRIA SELLS $54.5 MILLION IN GENERAL OBLIGATION BONDS

Today, the City of Alexandria competitively sold $54.5 million in general obligation bonds to Morgan Stanley, Dean Witter at a true interest cost of 4.599 percent. There were nine other syndicates representing 23 financial institutions that sought to purchase the City’s bonds, but Morgan Stanley, Dean Witter offered the lowest interest rate.

These bonds will be used to finance a portion of the City’s and School’s capital projects over the next two years. The balance of the capital projects will largely be financed with General Fund revenues.

“We were very pleased with the results of the bond sale,” indicated Alexandria City Manager Philip Sunderland.
“Market conditions were right with low interest rates, so that the City could take advantage of this interest rate environment and lock in these low rates over the twenty-year period of bond repayment.”

The City’s general obligation bonds are rated AAA by Standard & Poor’s and Aaa by Moody’s Investors Service. The bond ratings were reaffirmed last month in conjunction with this bond sale. These are the top bond ratings possible, making Alexandria only one of 31 cities in the entire United States with two triple-A bond ratings from both the major bond rating agencies.

In rating the bonds, Standard & Poor’s recognized the “city’s superior credit characteristics” and its “low debt burden.” In addition, Standard & Poor’s stated that the factors contributing to the AAA rating included “consistently strong financial operations and planning that employ practices that are in the forefront of government management.”

“To have such exemplary statements from both of the major bond rating agencies is a testament to the City Council’s foresight in adopting and adhering to written financial policy guidelines,” said Mayor Kerry J. Donley. “Also, the City Manager and his staff share this credit, as their accomplishments in managing the City and its finances were recognized,” Donley continued.

For this bond sale, the City issued its bond prospectus online, made the prospectus available through the City’s web site, and took bond bids over the Internet.

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