Bond Issue Will Save Norfolk Thousands of Dollars

NORFOLK - The City of Norfolk will save thousands of dollars after agreeing to issue bonds, the proceeds of which will pay off more expensive bonds that were issued in 2008.  The city issued the Series 2008 bonds to help finance improvements in the Downtown Vehicle Parking District.  City Finance Officer Randy Gates told the mayor and city council at its meeting Tuesday that the wide gap in interest rates makes the decision to re-finance easy one.   The 2008 bonds had interest rates ranging from 3.5% to 5.3%, while the anticipated interest rates on the bonds range from 0.3% to3.75%.  Gates says he expects the net present value savings to be more than $35,000 dollars.  The council voted unanimously to issue $260,000 in refunding bonds, and to pay off the 2008 bonds.