Refinance $146 million pension debt to eliminate costly interest rate swaps

Labor & City WorkersBudgetResolution

In Plain English

The city owes $146 million from 2005 pension bonds that come with expensive interest rate swap agreements. One swap faces mandatory termination in August 2023, requiring a large termination payment. If approved, new bonds eliminate both swaps and extend repayment terms, potentially reducing annual payments but increasing total long-term cost.

Auto-generated summary. Source: official agenda documents.

Votes

ADOPT said resolution with the revision to the underwriter's fee as stated by Mr. Northcross

Moved by: Councilmember BatesSeconded by: Councilmember Willis
Passed

7 to 0

Thomas K. ButtAye
Nathaniel BatesAye
Claudia JimenezAye
Demnlus Johnson IIIAye
Gayle McLaughlinAye
Eduardo MartinezAye
Melvin WillisAye

Community Discussion

This discussion was submitted to the City Clerk as part of the public record.

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