NORFOLK, Va. – On Dec. 17, the City completed the sale of a $15,600,000 Water Revenue Bond to the Viginia Resources Authority (VRA). This bond will partially fund the capital costs to complete lead service line (LSL) inventory projects and lead service line replacement projects, in response to the U.S. Environmental Protection Agency’s Lead and Copper Rule Revisions. These revisions require all water systems nationwide to prepare and maintain an inventory of public and private-side LSL materials, provide a map of the inventory on a public-facing website, and develop a 10-year LSL replacement plan.
This loan demonstrates Norfolk’s proactiveness and commitment to shared expenses, that has allowed the City to provide essential services while demonstrating responsible stewardship of rate payer dollars. This bond was sold at a favorable interest rate of 1.00 percent. Further, the loan is structured with an additional $10,400,000 component, which operates like a grant and does not have to be repaid, that was made possible through federal funding under the Bipartisan Infrastructure Law.
Also on Dec. 17, the City successfully issued an $18,110,000 Wastewater Revenue Bond to the Virginia Resources Authority closing this bond transaction. This bond will partially fund critical infrastructure improvements, including enhancements to pump stations and the replacement of sewer mains across the City’s Wastewater System.
The Bond was sold at an interest rate of 0.50 percent, an outstanding financial advantage for the City. Further, the loan is structured with an additional $2,890,000 in principal forgiveness, made possible through state and federal subsidies. This unique benefit reduces the City’s debt burden, enabling the City to reinvest savings into future infrastructure projects and deliver better services to Norfolk residents.