Received below market rate with principal forgiveness to advance storm water infrastructure projects
NORFOLK, Va. – On May 29, the City of Norfolk issued a $16,550,305 Storm Water Revenue Bond through the Virginia Clean Water Revolving Loan Fund, administered by Virginia Resources Authority. This strategic financing allows the City to access a highly competitive interest rate of just 0.5% to fund vital storm water infrastructure improvements across Norfolk.
The bond proceeds will be used to advance several previously authorized storm water projects, including enhancements to St. Paul’s Blue-Greenway, restoration of shorelines and wetlands throughout the City, storm water system improvements at East Ocean View Recreation Center, Riverside Memorial Cemetery, Mason Creek and Lake Whitehurst, retrofits at Meadow Lake, and spillway replacement at Lake Taylor.
The bond will be repaid solely through storm water system revenues, with no impact on the City’s General Fund. The total cost of the storm water projects is estimated at $18,463,432. As part of the loan agreement, the City received $1,913,127 in principal forgiveness, effectively covering the remaining balance of the project cost at no additional expense to the City.
This accomplishment underscores the City’s continued commitment to responsible fiscal stewardship and sustainable infrastructure investment. By leveraging state-supported funding programs, Norfolk is able to reduce borrowing costs and enhance environmental resilience for the community.