Nearly record low interest rates just saved Arlington County taxpayers a lot of money in borrowing costs.
Arlington County sold $108 million worth of general obligation bonds on Tuesday to J.P. Morgan Securities at an average interest rate of 2.77 percent.
“The value of the County’s triple-A rating, which was recently reaffirmed, is evident in the results of today’s sale,” County Board Chair Mary Hynes said in a statement. “These historically low rates will help the County meet many critical infrastructure needs at the lowest possible cost.”
Most of the money, $65.1 million, will go toward schools projects, including Yorktown High School construction, design and construction of Wakefield High School and both heating, ventilation and air-conditioning and roofing projects. Some $35.6 million will be dedicated to neighborhood projects, maintenance, the Arlington Mill Community Center, Long Bridge Park improvements and Arlington’s Metro obligations. The remainder, $8.5 million, will go toward completion of the water pollution control plant.
The sale followed the news last week that Arlington has retained its Triple A bond rating from three major agencies, one of only 39 counties nationwide to attain that level. Moody’s, Standard and Poor’s and Fitch cited the county’s excellent financial management. Moody’s retained its negative outlook on the county because of its close economic connection with the federal government.
Thirty-six local governments remain on negative outlook, including nine in Northern Virginia. Jason Friess, a financial analyst with Arlington County, said the outlook has had no noticeable impact on the county’s ability to price or sell bonds.