- County Board approves $42.6 million refinancing by Virginia Resources Authority
- $176,000 in annual Utilities Fund savings
The Virginia Resources Authority’s (VRA) refinancing of two (VRA) Wastewater and Water System Revenue Bonds will save Arlington County $2.2 million in reduced interest rates on those loans over the next 14 years. The loans were one of the funding sources for the County’s massive, $568 million upgrade and expansion of its aging Water Pollution Control Plant (WPCP), substantially completed in 2012, to meet the demands of a growing population and increased state and federal water pollution control requirements. The upgrade has cut the amount of nutrients – harmful nitrogen – flowing into the Chesapeake Bay to well below state permit limits, and has increased capacity to handle decades of expected population and business growth in Arlington.
“This is great news for Arlington County taxpayers,” said County Board Chair Mary Hynes. “Not only do we have one of the most effective and efficient WPCPs in the Commonwealth, this lowering of interest rates, combined with our triple-triple-A rating, helps us save millions of dollars for our community as we continue contributing to an improved Chesapeake Bay.”
The County Board voted 5-0, as part of its Consent Agenda, to approve a cost of funds reduction on two of Arlington’s VRA Wastewater and Water System Revenue Bonds. The refinancing was made possible due to a pass-through of savings from VRA’s refinancing of their own Series 2009 and Series 2010B Clean Water State Revolving Fund Revenue Bonds, the funding source for the County’s bonds.
The refinancing reduces Utilities Fund debt service by $88,000 in FY 2016 and $176,000 annually thereafter, or $2.2 million over the 14-year life of the loans, on a present value basis.
To read the staff report for this item, visit the County website. Scroll down to Item #40 on the Agenda for the Saturday, Sept. 19 County Board Meeting.