Debt Administration Oversees the Issuance and Sale of the City of Virginia Beach, VA Bonds
It also performs analysis, ensures timely payment of debt service for bonds and the Agricultural Reserve Program, coordinates continuing disclosure filings and oversees an arbitrage compliance program.
The proceeds of the bonds issued by the City are used to finance capital improvement projects, such as schools, roadways, stormwater and water and sewer infrastructure, police and fire stations, libraries, recreation centers and public infrastructure to support economic development projects. There are three types of bonds:
General Obligation Public Improvement (GO)/Charter Bonds
GO/Charter bonds are authorized by the City Charter, Chapter 6, sections 6.01-6.06. The term of these bonds is usually 20 years. This debt is backed by the full faith and credit of the City rather than user fees or revenues of project itself.
Public Facility Revenue Bonds (PFRBs)
PFRBs are appropriation-supported debt approved by City Council annually in the City's capital improvement program (CIP) and are secured by a "subject to appropriation" pledge by the Council. PFRBs are issued through the Virginia Beach Development Authority (VBDA) for a term usually of 20 years and are supported by an agreement between City Council and VBDA.
Revenue bonds are issued by the City's water and sewer utility system and the stormwater utility system to fund major system improvements. These bonds are secured solely by user fees or projected revenues and include no pledge from the City's full faith and credit.