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Suffolk City Council gave a unanimous approval to authorize the issuance and sale of stormwater system revenue bonds to finance approved stormwater capital projects not exceeding $5,600,000.

During their Wednesday, Sept. 4 meeting, David Rose of Davenport and Co. LLC gave a Stormwater Utility Plan of Finance Update to Council ahead of the public hearing that meeting. Rose detailed that the stormwater issuance process will be issued via revenue bonds at approximately $5 million per council’s adopted Capital Improvement Plan.

“That process has been ongoing in the summertime,” Rose said. “We’re going to go through that Virginia Resources Authority, or VRA pool program, and your action this evening via an ordinance will be the last thing that is required along with the public hearing associated with it.”

Rose detailed in his presentation that Davenport administered a competitive direct bank loan bidding process earlier in June and July as well as presented the results of the bidding process to council on July 17 in comparison to a current market estimate of the Fall Virginia Resources Pooled Financing Program (Fall VRA Pool Issuance). Davenport recommended that the city proceed with the issuance and the city applied to be included in the issuance, receiving approval from VRA. Council’s vote approved moving forward with the issuance in support of the identified FY 2025 debt-funded stormwater capital projects.

There was no opposition in the hearing. For the next steps, local approvals are due for VRA by Friday, Sept. 20. VRA will sell their bonds by a tentative date of Tuesday, Oct. 29 and Tuesday, Nov. 19 will be the tentative VRA closing date. The 2024 Stormwater Revenue Bond funds will then be advanced to the city.