2020 Bond Issuance

2020 Rating Agency Reports - General

In August 2020, County representatives met with Fitch, Moody’s and Standard & Poor’s to present current economic and financial information pertaining to Spotsylvania County.  The presentation is available here.

The County’s strong credit ratings were affirmed by each of the three agencies – AAA from Fitch and Standard & Poor’s, and Aa1 from Moody’s.  Below are the full rating reports from each agency:

Fitch
Moody's
Standard & Poor's 


2020 General Obligation Bond Issuance

On July 28, 2020, the Board of Supervisors approved the issuance of up to $51.0 million in General Obligation (GO) bonds to refund previously issued bonds for debt service savings and to finance the following projects:

  • Exit 118 improvements; and
  • School technology, bus replacements, and school building capital maintenance.

Then, on September 1, the County sold $19.35 million in GO bonds at an “all in” true interest cost of 1.134%.  The refunding of previously issued bonds results in $1.15 million in net savings over the remaining life of the refunded bonds.

Executive Summary from July 28, 2020 Board of Supervisors Meeting
Resolution Adopted by Board of Supervisors on July 28, 2020


2020 Rating Agency Reports - Water/Sewer System

In September 2020, County representatives met with Fitch, Moody’s and Standard & Poor’s to present current economic and financial information pertaining to Spotsylvania County’s water and sewer system.  The presentation is available here.

The County’s rating was upgraded by two notches (from AA- to AA+) and assigned a positive outlook by Fitch, while Standard & Poor’s and Moody’s affirmed their ratings at AA and AA2, respectively.  Below are the full rating reports from each agency:

Fitch
Moody's
Standard & Poor's


2020 Water/Sewer Bond Issuance

On August 25, 2020, the Board of Supervisors held a public hearing and took action authorizing the issuance of up to $86.7 million in Water & Sewer System Revenue & Refunding (W/S) bonds to refund previously issued bonds for debt service savings and to finance approximately $17.4 million for the following projects:

  • Thornburg Distribution Improvements;
  • Harrison Road Waterline;
  • Pump Station 24 Relocation;
  • Thornburg Wastewater Treatment Plant Upgrade; and
  • Deep Run Sewer Rehabilitation.

Brief project descriptions may be found here.  Additional documentation is posted below:

Then, on October 20, the County sold $46.53 million in Water/Sewer Revenue & Refunding bonds at an “all in” true interest cost of 1.708%.  In addition to providing funding for $17M of water/sewer projects planned for FY 2021, this issuance refunded the outstanding 2010A and 2010B bonds at a debt service savings of $10.8 million over the remaining life of the refunded bonds. Actions like this help keep our water/sewer rates among the lowest across comparable Virginia water/sewer systems.