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The original item was published from 6/24/2022 1:24:33 PM to 8/7/2022 12:00:18 AM.

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Posted on: June 24, 2022

[ARCHIVED] Norfolk Saves $8.2 Million to Benefit Water System Customers

City retires $19.3 million in bonds to produce savings

NORFOLK, VA – Norfolk’s Water System will save $8.2 million after the city retired $19.3 million of its existing Series 2010 and 2012 Water Revenue and Refunding Bonds, which were eligible to be prepaid without penalty. 

The City’s experienced financial team is saving money for water users, a credit to the fiscal policies and practices established by Norfolk City Council. By lowering the cost of borrowing for major capital projects, the City will be able to invest even further in the water supply reliability and efficiency of the water system.

This prepayment has also enabled the City to release over $2.2 million from reserves securing the Series 2010 Bonds and eliminate future interest payments that were associated with the bonds. 

The defeasance is an effective management of financial resources that strengthen the Water System’s financial position and increases the Water System’s capacity to make future system wide capital investments for critical water infrastructure projects.

Norfolk and its financial advisor, PFM Financial Advisors, LLC, continue to review the City’s portfolio of bonds and look for opportunities to lower interest rates on its debt.

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