City of Manassas Bond Rating Saves $1.4MM in Taxpayer Dollars

The City of Manassas’ bond ratings were reconfirmed by Moody’s as AA1 and by Standard and Poor’s as AA+ with a stable outlook, helping the City save more than $1.4 million in taxpayer dollars over the life of the bonds.

The reaffirmed bond ratings have helped the City of Manassas refinance previous general obligation and airport bonds at much lower interest rates, according to the City. Payment of these bonds will be completed in 2031.

Following a competitive bid process that attracted 11 bidders, the City’s new general obligation bonds - over $37 million each - were awarded to PNC Capital Markets at a true interest cost of 2.73 percent.

The bonds will be used to build the new 150,000-square-foot Baldwin Elementary School, which is set to accommodate 1,100 students from Pre-K through 6th grade. Construction of the school is expected to begin in late January to early February 2015 and will be completed in June 2016. Payment of these bonds will be completed in 2035.

Among of the reasons cited for the reconfirmed bond ratings are the City of Manassas’ strong economy, strong wealth and income and low unemployment.