Virginia Beach City Council received a year-end financial briefing Tuesday that described the city’s finances as strong and detailed plans to borrow for a slate of large capital projects over the next five years.

Kyle Laux of Davenport, the city’s financial adviser, told council members Virginia Beach carries AAA ratings from Moody’s, Standard & Poor’s and Fitch because of a sizable and diverse tax base, conservative budgeting and established policies. He also warned that reserve and liquidity levels are modest compared with some AAA peers and that exposure to Department of Defense funding changes is monitored.

“On the next several years we have a bunch of stuff to do in terms of capital,” Laux said, noting the city’s financial management practices are a critical factor in maintaining top ratings and the lowest possible cost of borrowing.

Deputy City Manager Monica Crossky introduced Nikki Griffith as the city’s new finance deputy director; Griffith said Davenport and staff are already planning the next general obligation bond issue. Griffith said the upcoming bond would reimburse previously spent projects and schools, noting about $115,000,000 in city project reimbursements and roughly $47,000,000 for school projects reflected on the slide presented to council.

Griffith also said Davenport identified potential refunding opportunities and estimated roughly $2,900,000 in debt-service savings if a 3% net-present-value threshold is met. She said the city will not extend maturities when refunding and that any refunding is subject to market conditions through the day of sale.

Davenport showed a five-year borrowing plan that layers about $1.3 billion in new debt across charter bonds, personal-finance-related borrowings and the flood-protection program; a near-term charter bond of roughly $162,000,000 was flagged for the early part of the next calendar year. Davenport emphasized the issues will be staged to remain within current policy ratios.

Council members questioned drivers of the small decline in unassigned fund balance and the point at which fund balance erosion could affect creditworthiness. Councilmember Stacy said the slide showed spending growth outpacing revenue growth as the primary driver; Laux replied the trend is a mix, adding that fund-balance ratios are a key marker of flexibility for rating agencies.

Next steps announced included an authorization request on the Jan. 6 council agenda and a competitive sale expected in February–March, when interest rates will be locked in and any decision to refund will be finalized.

The presentation materials and ratings reports were described as public and available in the agencies’ published reports.