News Release
FOR IMMEDIATE RELEASE

Date:	Wednesday, January 20, 1999
Contact:	Arthur Gitajn, Director, Financial and Information Technology Services, (703) 838-6420; Amy Bertsch, City Manager's Office, (703) 838-4300

City of Alexandria Sells $40 Million in General Obligation Bonds

The City of Alexandria today sold $40 million of general obligation bonds to a syndicate led by First Union Capital Markets at a true interest cost of 4.344 percent. The bonds, which will mature in increments of $2 million a year over the next 20 years, will be used to finance public improvements, including a new community library, a new elementary school, and renovations to recreation facilities. Other members of the winning syndicate include NationsBank, Stevens & Company, Crews & Associates, and First Winston.

On January 15, the nation's two leading municipal bond rating agencies--Moody's Investors Service and Standard & Poor's (S&P)--assigned their highest credit ratings (Aaa and AAA) to the City's bonds. According to James Traudt, Senior Vice President of Davenport & Company, "The City's triple-A rating from both S&P and Moody's saved the City approximately $500,000 in interest costs over the life of the bonds. The high level of competition for the City's bonds and the extremely favorable bids reflect the market's perception of Alexandria as a premier credit."

"Financing our capital needs at the lowest possible interest rates is the reward for the City's financial discipline," said Alexandria Mayor Kerry J. Donley.

"We are extremely pleased with the results of today's bond sale," said Alexandria City Manager Vola Lawson. "All Alexandrians benefit from the sale of the bonds at this extremely low interest rate, an average of 4.344 percent over the 20-year life of the $40 million general obligation bonds."

The City received eight additional bids, with the second best bid at a true interest cost of 4.373682 percent from a group led by Merrill Lynch & Company.