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Vienna officials on March 10 issued $34.5 million in general-obligation bonds that will pay for public improvements, including a new police station.

The town accepted an interest-rate bid of 1.86 percent from J.P. Morgan Securities, as well as a $3.1 million premium, which is a bonus offered by the investment firm to the town.

The town government usually issues bonds every two years to finance capital-improvement projects, repaying the bond funds with meals-tax revenues and water-and-sewer fees. The town will pay off the most recent bond issue over the next 20 years.

Vienna officials received five bids for the bond issuance and expect to close March 25 on the agreement.

“We’re really excited to have received such an excellent interest rate,” Finance Director Marion Serfass said in a media statement. “That exceptional rate of 1.86 percent is a testament to the town’s AAA bond rating and sound fiscal policies, as well as current market conditions. Obviously, investors find the town of Vienna a safe, conservative investment.”

The bond issuance was unusually large for the town and likely will not be repeated for years, said Mayor Laurie DiRocco.

“I’m so excited for the town and its residents,” said DiRocco, who attributed the low interest rate to the town’s continually excellent bond rating.

“Town staff has great financial-management practices,” said the mayor, a former adjunct professor at George Mason University’s School of Management.

Until 2012, Vienna used to limit its bond sales to no more than $5 million, as anything above that would trigger Internal Revenue Service deadlines on when the moneys would need to be spent.

The town immediately will begin implementing 2020 capital-funded initiatives, including construction of a new police station, property acquisitions, a potential public parking facility and a parks master plan. The new police station will cost $14.9 million to build, and officials hope to break ground for the project later this year.

The town also will use some of the bond proceeds to upgrade its stormwater, sewer and water infrastructure.

“We’re ramping up to make sure our system is strong,” DiRocco said.

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