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.
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 eliminating future interest payments that were associated with the bonds.
The voiding of these bonds will strengthen the water system's financial position and increase its capacity to make future system-wide investments in critical water infrastructure programs, the city said.
Norfolk and its financial advisor will continue to review the city’s portfolio of bonds and look for opportunities to lower interest rates on its debt.
