- Board approves $100 million refinancing by Virginia Resources Authority
- $147,000 in annual Utilities Fund savings
The Virginia Resources Authority's (VRA) refinancing of three (VRA) Wastewater and Water System Revenue Bonds will save Arlington County $3.5 million in reduced interest rates on those loans over the next 16 years.
“This is great news for Arlington County taxpayers,” said Board Chair Jay Fisette. “In refinancing these bonds, the VRA is doing what Arlington County does every time we get the chance – saving taxpayer dollars by refinancing bonds when lower interest rates are available. Arlington took out these loans to help finance our largest infrastructure improvement – the upgrade and expansion of the Water Pollution Control Plant. VRA's refinancing means that Arlington taxpayers will save $3.5 million over the life of the loans.”
The County Board voted unanimously to approve a cost of funds reduction on three 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 2007 and Series 2008 Clean Water State Revolving Fund Revenue Bonds, the funding source for the County's bonds.
The refinancing reduces Utilities Fund debt service by $147,000 annually, or $3.5 million over the 16-year life of the loans, on a present value basis.
The loans were one of the largest funding sources for the County's massive, $568 million upgrade and expansion of its aging Water Pollution Control Plant, 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.
To read the staff report on this item, visit the County website. Scroll down to Item #28 on the Regular Agenda for the December 16, 2014 County Board Meeting.
To schedule a tour of the Water Pollution Control Plant, visit the County website.