Triple-A rated Fairfax County plans to bring $204 million of general obligation bonds to market on Tuesday and, subject to market conditions, a $45 million GO refunding deal on Wednesday.
Of the proceeds from the $204 million Series 2009A GOs, $156.6 million will finance school improvements, parks will get $18.9 million, and the remainder will finance transportation improvements, public safety, and library facilities, according to the preliminary official statement. The $45 million 2009B refunding bonds will refund Series 1999A bonds.
The Series 2009A bonds have maturities from 2010 out to 2029, and the Series 2009B refunding bonds have maturities from 2011 to 2014.
Public Financial Management Inc. of Arlington is financial adviser on the deal. Sidley Austin LLP of New York is bond counsel.
All three credit agencies gave next week’s transaction triple-A ratings.
The county, located just outside of Washington, D.C., has $1.9 billion of GO debt outstanding.
Fitch Ratings noted Fairfax’sproximity to the nation’s capital, along with a diverse economic base, high wealth levels, low unemployment, excellent financial planning and management, and a moderately low debt burden. The county will have 71% of its debt retired within the next 10 years, Fitch said.
Fairfax has not been immune to national economic turmoil. It has seen significant increases in foreclosures and declining home prices, trends that are projected to continue over the near term. Fitch said it expects the county to be able to deal with the effects of the housing market downturn given the breadth of the local economy.
Fairfax County sold $234.5 million of public improvement bonds to Banc of America Securities LLC at a true interest cost of 3.77% on Jan. 15 of last year.