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January 10, 2023 <br /> <br />23 - 19 - A. Adoption of an ordinance authorizing the issuance and sale of <br />revenue bonds by the City of Portsmouth, Virginia, to finance wastewater system <br />capital improvements, and establishing the terms, details, and provisions for the <br />payment thereof (Wastewater System Revenue Bonds; Total Principal Amount not <br />to exceed $5,950,000). <br /> <br />B. Adoption of an ordinance authorizing the issuance and sale of stormwater <br />general obligation bonds by the City of Portsmouth, Virginia, and establishing the <br />terms, details, and provisions for the payment thereof (Stormwater General <br />Obligation Bonds; Total Principal Amount not to exceed $2,900,000). <br /> <br />Background: <br /> <br /> The Virginia Water Facilities Revolving Fund offers financing through the Virginia <br /> <br />Resources Authority (VRA) for wastewater and stormwater infrastructure projects. <br /> <br /> <br /> The financing is beneficial for localities because it is generally low or zero interest. <br /> <br /> The City applied for two loans through VRA. The first is in the principal amount of <br />$5,741,007 for sewer improvements (the “Wastewater Loan”). The second is in the <br />principal amount of $2,574,741 for stormwater improvements (the “Stormwater Loan”). <br /> <br /> The Wastewater Loan has a maximum term of thirty years and an interest rate of <br />0.5 percent. A portion of the loan is forgivable. <br /> <br /> The Stormwater Loan has a maximum term of twenty years and an interest rate of <br />0.0 percent. <br /> <br />Discussion: <br /> <br /> In order to obtain the loans under the VRA program guidelines, the City must issue <br />bonds to secure VRA. <br /> <br /> It is therefore necessary for City Council to adopt ordinances authorizing the <br />issuance of bonds. <br /> <br /> The bond securing the Wastewater Loan will be in a principal amount not to exceed <br />$5,950,000, which includes the principal amount of the Wastewater Loan and costs of <br />issuance. <br /> <br /> The bond securing the Stormwater Loan will be in a principal amount not to exceed <br />$2,900,000, which includes the principal amount of the Stormwater Loan and costs of <br />issuance. <br /> <br /> Upon City Council authorization of the bonds, the City will close on the financing <br />by January 31, 2023. The projects to be funded are already underway. <br /> <br />Financial Impact: <br /> <br /> <br /> The bonds will allow the City to obtain low and zero interest loans to fund capital <br />improvement projects. <br /> <br />Recommended Action: <br /> <br /> <br /> <br /> Adoption of the ordinances. <br /> <br />Next Steps Following Council Action: <br /> <br /> <br /> <br /> The City will issue the bonds and close on the financing. <br /> <br />23-19a: <br /> <br />Motion by Ms. Lucas-Burke, and seconded by Mr. Tillage, to adopt the following <br />ordinance, and was adopted by the following vote: <br /> <br />“ORDINANCE AUTHORIZING THE ISSUANCE AND SALE OF REVENUE BONDS BY <br />THE CITY OF PORTSMOUTH, VIRGINIA, TO FINANCE WASTEWATER SYSTEM <br />CAPITAL IMPROVEMENTS, AND ESTABLISHING THE TERMS, DETAILS, AND <br />PROVISIONS FOR THE PAYMENT THEREOF (WASTEWATER SYSTEM REVENUE <br />BONDS; TOTAL PRINCIPAL AMOUNT NOT TO EXCEED $5,950,000).” <br /> <br />Ayes: Barnes, Hugel, Lucas-Burke, Moody, Tillage, Whitaker, Glover <br />Nays: None <br /> <br /> <br /> <br /> <br /> <br />