Council hears bond sale plan, is told $755,000 issuance locks 3.8486% interest rate

Maggie Berger of Spear Financial told the Fairfax City Council the city received two bids and she recommended awarding $755,000 of general obligation corporate purpose bonds, series 2026, to Bankers Bank of Madison, Wisconsin at a true interest rate of 3.8486%.

Berger said the sale process produced a true interest cost of 3.8486% and that, if the city holds the bonds to maturity, interest paid would total about $168,016. She explained the issue includes a call feature on 06/01/2033, meaning the city — or investors — could retire or refund the bonds on or after that date if market rates make refinancing advantageous. "If you hold these bonds to maturity, you will pay interest of $168,016," Berger said.

Berger said the legal and bond‑counsel documents were not available for the council packet the same day as the sale, so the council will take a single authorizing resolution at a special meeting to lock the interest rate and complete signature and filing steps. She said the city should expect the bond proceeds to arrive in the city account on Aug. 12.

Why it matters: The finance action funds planned capital uses identified in the packet and locks the market rate resulting from competitive bids. Councilmember discussion focused on procedural next steps and assuring the public that staff will monitor future refunding opportunities.

What’s next: Berger said a special meeting will include an authorizing resolution and the final documents; staff will return with the resolution and the recording of signatures required for closing.