The three major bond rating agencies have given the Town of Leesburg triple-A ratings with a stable outlook on its $12.4 million Series 2019 General Obligation Refunding Bonds.
The Series 2009 bonds are being issued only to save on interest rates by refinancing Series 2009 General Obligation Build America Bonds. The town expects to save more than a million dollars over the life of the refunded bonds, or about $40,000 a year.
Key drivers to the ratings included a strong economy, strong management, budgetary flexibility, and overall liquidity.
Town officials visited the ratings agencies Fitch Ratings, Moody’s, and Standard & Poor’s earlier this month before the issuance of $58 million in General Obligation Bond Anticipation Notes to fund the town’s six-year Capital Improvements Program for the General and Utilities Funds.
“The Town will save a substantial amount of money by refunding the Series 2009 bonds at this time,” stated Clark Case, Leesburg’s Director of Finance and Administrative Services. “In addition, the lines of credit will provide money at a very favorable rate for capital projects for the Town’s General Fund and Utilities Fund on an as-needed basis for the next five years. Combined, these two actions further strengthen the Town’s financial position.”