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Leesburg Issues $58 Million in General Obligation Bonds to Fund Capital Improvements Program
Town is utilizing short-term lines of credit to reduce interest payments.
Leesburg, VA (June 14, 2019) – Yesterday, the Town of Leesburg issued $58 million in General Obligation Bonds via bond anticipation notes through Atlantic Union Bank. The bonds will fund the Town’s six-year Capital Improvement Program, including $25.5 million for General Fund projects and $32.5 million for Utilities Fund projects.
The notes are secured by the Town's general obligation tax pledge and will pay a fixed rate of 2.561% over the next five years with a maturity date of June 13, 2024. The bond anticipation notes are short-term lines of credit that may be refinanced without penalty before maturity. Town officials anticipate that the notes will be replaced with 20 and 30 year bonds when market conditions are favorable near the end of the five-year, fixed-rate period. The bonds were privately placed after a competitive bid that was won by Atlantic Union Bank, formerly Union Bank & Trust.
"The two new lines of credit will provide money at a very favorable rate for capital projects for the Town's General Fund and the Town's Utilities Fund on an as needed basis for the next five years,” said Clark Case, Leesburg’s Director of Finance and Administrative Services. “The Town will save money by not having to pay interest on borrowed money until the money has been used. The arrangement also will provide the Town with flexibility should capital projects need to be done sooner than expected or get delayed."
Public Information Officer