September 25, 2009

City of Arlington Remains Fiscally Strong
Maintains Favorable Bond Ratings, Receives Low Interest Rates

Even during tough economic times, the City of Arlington remains fiscally strong, city leaders said this week after maintaining favorable bond ratings and selling more than $35 million in bonds with low interest rates.

“In this economy, it’s nice to have a positive story to tell,” City Manager Jim Holgersson said.

This week, the City of Arlington sold the following bonds:

• $29.4 million in permanent improvement and refunding bonds, Series 2009
• $6.86 million in combination tax and revenue certificates of obligation, Series 2009A
• $2.06 million in combination tax and revenue certificates of obligation, Series 2009B

These bonds will fund capital projects for streets, parks, municipal airport, public safety, and libraries.

Prior to the bond sale, City staff met with three major rating agencies. According to Financial and Management Resources Director April Nixon, all three agencies confirmed the following bond ratings: Maintained AA rating with Fitch, maintained AA+ rating with S&P, and maintained Aa2 rating with Moody’s.

“Given the fiscal state of the overall economy, City of Arlington staff and our financial advisors are pleased to see these ratings maintained,” Nixon said. “These favorable ratings allow the City to continue to minimize its debt issuance costs.”

According to Nixon, Bank of America purchased the $29.4 Million Series 2009 bonds at a total interest cost of 3.55 percent. Hutchison, Shockey, Erley and Company purchased the $6.86 million at an interest cost of 1.84 percent and First Southwest purchased the $2.06 million at 1.91 percent. These low interest rates will allow the City of Arlington to build and maintain needed infrastructure while issuing debt at very low costs, Holgersson said.

“The leadership of the Mayor and City Council, along with years of strong financial management from staff members, has allowed the City to remain fiscally strong during these challenging times,” he said.

To learn more about city financial services, visit the City of Arlington website at www.arlingtontx.gov keyword search: Financial Services.