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The original item was published from 8/15/2019 1:49:32 PM to 6/1/2020 12:00:08 AM.
Posted on: August 15, 2019
[ARCHIVED] City of Petersburg Saves $2.5 Million Through Refinancing Bonds
City of Petersburg Saves $2.5 Million
Through Refinancing Bonds
Petersburg, Virginia: The City of Petersburg, in collaboration with its financial advisor, Davenport & Company and its bond counsel has closed on a refinancing of 2009 bonds, in the amount of $8.1 million. This proactive financial transaction resulted in a nearly $2.5 million savings for the City over the next couple of decades.
“Two years ago, when I accepted the position of City Manager, the financial outlook for Petersburg was highly unfavorable. While there is certainly still work to be done, we can see the progress of our efforts through a positive fund balance and the City’s bond rating increasing from ‘stable’ to ‘positive,” said Petersburg City Manager, Aretha R. Ferrell- Benavides.
This $2.5 million savings will be reflected in the City’s expenditures over the years. By reducing our indebtedness, the City saves valuable resources that would have been lost in interest payments over time.
“Had it not been for the strong financial vision and prioritization of fiscal stabilization by the City Manager, we would not have been able to complete this transaction and save the City millions in the process,” said Petersburg Mayor, Sam Parham. “Mrs. Ferrell-Benavides and our City staff, particularly the Finance and Budget team, have continued to honor their commitment to strengthening Petersburg’s financial foundation.”
With the continued focus on rebuilding our fund balance, the City’s highly skilled financial team is constantly looking for ways to save the City money and reduce the tax burden of our residents. The refinancing of these bonds is just one example of a proactive approach to ensure the City is continuing to be a responsible steward of taxpayer funds, while ensuring a high quality of customer service to the community.