Development News for Suffolk, Virginia

City Council Reviews 2026 Bond Issuance Plan and Refinancing Opportunities

The city is proceeding with its plan of finance for the 2026 bond issuance and exploring refunding opportunities. The capital improvements plan (CIP) for FY27 has been completed and approved, enabling the city to issue debt for planned capital projects. The city's financial advisor, Davenport Company, presented the plan, highlighting that the city's financial policies are in compliance and that it holds a AAA credit rating from all three major rating agencies. This strong rating is expected to allow for borrowing at interest rates considerably below the planned 5%, potentially in the mid-to-high 3% range, which is near 40-year lows. The city plans to issue approximately $35 million in general obligation bonds for the general fund CIP, with further borrowing planned over the next five years totaling around $175 million. Refinancing opportunities have been identified for the utility funds (water and sewer), specifically for 2015 and 2016 VRA bonds, which could result in net present value savings of at least 3%, estimated at approximately $1.1 million. The refinancing will not extend the final maturity of the debt. The city council is expected to take action on the general obligation bonds on July 15th and on a resolution for the utility fund refinancing, which is on the consent agenda for the current meeting. The VRA refinancing is on their schedule for July 21st, with a closing expected around August 4th. The city maintains a conservative approach, using 2% growth assumptions for expenditures and assessed value in its projections and paying off approximately 70% of its principal within 10 years.