County Receives All-Time Record-Low True Interest Rate on Bond Issuance

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Provided by Prince William County

Prince William County Seal

On March 1, 2016, Prince William County sold $26.3 million of Revenue and Refunding Bonds through the Prince William County Industrial Development Authority (IDA) at a record low 2.55 percent true interest cost (TIC). This is the lowest interest rate the County has ever received on a bond sale. The Series 2016 bonds were awarded to Davenport & Company, LLC, after a competitive bidding process that attracted six bidders.

The Series 2016 bonds were sold to finance the capital costs for the new central district police station and to refund certain maturities of the 2005 Lease Participation Certificates previously issued for County facilities.

“The rate on this bond sale is the result of the Board of County Supervisors’ commitment to sound financial management,” said Corey A. Stewart, Chairman of the Prince William Board of County Supervisors. “It is directly attributed to the work of the Board and County staff to find practical and fiscally responsible solutions to meet the financing needs of the County.”

These IDA Revenue and Refunding Bonds were rated AA+ by Fitch Ratings and Standard & Poor’s Rating Services. Both rating agencies also reaffirmed the County’s AAA credit rating on its existing outstanding General Obligation (GO) and Virginia Public School Authority (VPSA) bonds. PWL The County’s Director of Finance, Michelle Attreed, noted that the rating agency analysts performed an extensive review of the County’s Principles of Sound Financial Management, the FY 2016 Adopted Budget, Five-Year Budget Plan and Six-Year Capital Improvement Plan along with the most recent Comprehensive Annual Financial Report (CAFR) before granting the high rating. Standard & Poor’s noted in its report, “The rating reflects our assessment of the following factors for the county: very strong economy…, very strong management, with ‘strong’ financial policies and practices…, very strong budgetary flexibility…, and very strong liquidity.”

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