[Archived] City of Alexandria’s Triple-A Bond Ratings Reaffirmed

City Press Release


	For Immediate Release	For More Information, Contact
	May 31, 2006 PIO# 141-06/rdo	Brian Hannigan, Director of Communications, or Raynard Owens, Communications Officer, at 703.838.4300 Raynard Owens, Communications Officer, at 703.838.4300

City of Alexandria’s Triple-A Bond Ratings Reaffirmed
Agencies Cite Strong Local Economy and Sound Fiscal Practices

Moody’s Investors Services Inc. and Standard & Poor’s credit rating agencies have reaffirmed the City of Alexandria’s top triple-A bond ratings, the highest ratings possible, in conjunction with its upcoming issuance in June of $71 million in new General Obligation Bonds.

Alexandria, which will sell the tax-exempt and taxable 20 year bonds on June 13, remains as one of only 45 cities and towns 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 last week, following an independent professional review of the City’s finances, economy and fiscal management.

Mayor William Euille, City Manager Jim Hartmann and other City staff met with rating agency officials in New York earlier this month to provide officials with detailed information on the City’s fiscal health.

“These ratings once again confirm that the ratings agencies regard the City’s fiscal condition and financial management policies and practices as among the very best in the nation,” Mayor Euille said. “The City Council remains committed to maintaining this level of excellence.”

These double triple-A bond ratings allow the City to borrow money at very low tax exempt interest rates, in order to fund $56 million in capital projects such as the new T. C. Williams High School, park improvements, roads, sewers and City facilities. In addition, $15 million in double triple-A rated taxable bonds will be used for affordable work force housing multifamily rental projects.

“These ratings provide evidence that the City government continues to be financially sustainable,” Hartmann said. “The City’s financial condition is sound, and its financial stewardship practices at both the policy and administrative levels are excellent.”

In determining the City’s top bond rating of Aaa, Moody’s said, “This highest quality rating...reflects the city’s continued strong tax base growth, above-average wealth levels, economic stability derived from proximity to the nation’s capital, sound financial operations, conservative budgeting and strong debt position.” The report also said, “Moody’s believes that Alexandria’s demonstrated history of conservative budgeting and sound financial practices provide credit strength going forward.”

The Standard & Poor’s report, in reaffirming the City’s top AAA rating, noted, “The city’s colonial heritage (founded in 1749), and roles during the Revolutionary War and the Civil War also make the city a popular tourist destination. An estimated one million tourists visit Alexandria annually, drawn to the city’s Old Town area, with its many historically preserved 18th and 19th century buildings. City management estimates that the tourism sector contributes more than $400 million annually to the local economy and $10 million in direct annual tax revenue.”

In the next few weeks, the City’s official bond prospectus will be made available to the public through the City’s Web site, and the bonds will be competitively bid on June 13 using the Internet. Alexandria was the first local government in Virginia to bid its bonds using the Internet. This is now a relatively common practice.

“As a result of these top ratings, the City will be able to borrow successfully at the lowest possible interest rates for municipal bonds,” said Deputy City Manager Mark Jinks. “Issuing the prospectus via the Internet and accepting bids online allows the City to reach a wider audience of potential bidders in the financial community more effectively.”

The City received its first triple-A rating from Moody’s in 1986 and from S&P in 1992. These ratings were reaffirmed in 1994, 1999, 2000, 2001, and 2004.

# # #