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Bond Investor Information

OVERVIEW

Prince William County may issue debt for purposes of acquiring or constructing capital assets including land, building, equipment, and any other eligible expenses of the project and for making renovations to existing capital. As stated in County's Principles of Sound Financial Management, the County will consider the project and its useful life and utilize the most appropriate method to finance the project. Tax supported bonds will, whenever feasible, be issued on a competitive basis unless market conditions or the nature of the financing favors negotiated sales. General Obligation (GO) bond issues, and whenever possible for any type of annual appropriation debt, will be structured to allow an equal principal amount to be retired each year over the life of the issue thereby producing a total debt service with an annual declining balance. Prince William County will not use debt financing to fund current operations. Typically, the County issues bonds with maturities up to 20 years. Debt service for each issue will be structured to minimize the County’s interest payments over the life of the issue while considering the existing debt obligations of the County. Any debt issued shall not have a maturity date beyond the useful life of the asset being acquired or constructed by the debt proceeds. As market opportunities arise, the County may refund certain maturities of its bonds, if the refunding is expected to deliver savings. If the County is to pursue execution of refunding bonds, the transaction would be a separate series from the new money bonds. It is important to note that a refunding issuance does not extend the pay-off horizon of the outstanding County's obligations.

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