Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: WEDNESDAY, November 23, 1994 TAG: 9411230120
SECTION: CURRENT PAGE: NRV-6 EDITION: NEW RIVER VALLEY
SOURCE: BRIAN KELLEY STAFF WRITER
DATELINE: CHRISTIANSBURG LENGTH: Medium
The county will pay a true interest cost of 6.4 percent. NationsBank was the lowest of seven bidders.
"We are very happy with this rate," Board of Supervisors Chairman Larry Linkous said in a news release. The county's cost for the borrowing is close to that of another Virginia locality that has a higher bond rating, he said.
The borrowed money will be divided as follows: $2.9 million will pay for a new health and human services building in Christiansburg and $1.9 million will pay for renovations and expansions of the Blacksburg branch of the Montgomery-Floyd Regional Library.
The sale comes days after Moody's Investors Services upgraded the county to an "A1" bond rating from the "A" category. The improvement reflected a stronger economy and Moody's assessment of the county government's finances, debt and administration.
This was only the second time since at least 1950 that Montgomery went out on the bond market on its own credit. The last time was a $4.9 million general obligation bond sale to pay for school roofs and jail improvements in March 1987.
Since then, however, the county has sold bonds four times through the Virginia Public School Authority. In 1991, the county sold more than $5 million in bonds through VPSA to build Falling Branch Elementary School near Christiansburg. Last year, the county sold another $6 million through VPSA to pay for the newly opened Kipps Elementary School in Blacksburg.
County voters approved the bond sale last year. But the Board of Supervisors delayed it until now to lessen the first-year impact of paying the debt service on the bonds.
Work on the library and health buildings is to start in the spring.
by CNB