General Obligation Bonds

Page updated on Sep 24, 2019 at 10:11 AM

The City issues General Obligation Bonds to finance the City and School Capital Improvement Program, which is passed as part of the budget process each year. Bond issuances must be approved by City Council.

General Obligation Bond Issuances

City of Alexandria, VA General Obligation Bonds, Series 2012B: $76.82 million and General Obligation Refunding Bonds, Series 2012C: $17.34 million

City of Alexandria, VA General Obligation Refunding Bonds, Series 2012A: $66.5 million

City of Alexandria, VA General Obligation Capital Improvement Bonds Series, 2011: $69.95 million

City of Alexandria, VA General Obligation Capital Improvement Bonds, Series 2010: $72.3 million

City of Alexandria, VA General Obligation Capital Improvement Bonds, Series 2009A and 2009B: $79.7 million

City of Alexandria, VA General Obligation Capital Improvement Bonds Series, 2008A and 2008B: $63 million

The City's Bond Rating

Since 1992, the City's bonds have been rated AAA/Aaa by Standard and Poor's and Moody's Investors Service, the two primary rating agencies. The City' s AAA/Aaa credit rating and sound fiscal policies result in a favorable interest rate on the sale of its bonds, which saves the City considerable money over the 20-year repayment cycle.  

In 2011, in response to actions at the federal level, including an impasse in Congress over the national debt ceiling and deficit, Moody's assigned a "negative outlook" to the bond ratings for the City of Alexandria and those of six other Northern Virginia jurisdictions due to these jurisdictions' indirect and direct economic and financial ties to the federal government.  This "negative outlook" has been maintained on the City's Aaa bond rating since then; however, it's important to note that this rating action was based on the role federal employment and procurement spending play in the Washington– Arlington–Alexandria, DC–VA–MD–WV Metropolitan Statistical Area economy as a whole and does not reflect upon the economic or fiscal stability of the Northern Virginia jurisdictions in general or the City of Alexandria specifically. 

Standard  and Poor's has maintained the City's AAA bond rating.

City Bond Issuance Process

  1. Official Statement: City staff prepares the financial and informational sections of the City's Official Statement.
  2. Bond Amounts: The amount of bonds needed to fund the City's Approved Capital Improvement Program is determined. This information is then added to the City's Official Statement.
  3. Legal Opinion: The City's attorneys review the Official Statement and add the legal details of the bond offering and their legal opinion as to its validity.
  4. Bond Rating: The Official Statement is submitted to Standard and Poor's and Moody's Investor Services for rating. As stated above, the City has maintained a AAA/Aaa bond rating since 1992.  Since 2011, Moody's has rated the City Aaa with a "negative outlook."
  5. City Council Approval: Staff prepares a bond docket explaining the bond issuance and the intended uses for the funding and submits it for approval by City Council. This docket will be presented for reading at one public City Council meeting, then a second reading and passage at another public City Council meeting. The docket is made available to the public on the City Council website at least six days prior to each meeting.
  6. Issuance: Once City Council has approved the bond issuance, the bonds are offered for sale.

Additional Information

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