HomeMy WebLinkAbout030923 City of Port Townsend Takes Aim at Historic DebtCityaj
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FOR IMMEDIATE RELEASE
March 9, 2023
CONTACT:
Connie Anderson, Director of Finance &
Technology Services
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CITY OF PORT TOWNSEND TAKES AIM AT HISTORIC DEBT
City Council authorized paying off two bonds early to free up interest savings and
additional resources and to provide action and momentum toward greater financial sustainability
PORT TOWNSEND — The City of Port Townsend has taken small steps — or just over 1,600,664 of them —
toward paying down its debt. At this week's City Council meeting, Councilmembers unanimously authorized
defeasance (payoff) of $1,600,644.33 of Limited Tax General Obligation (LTGO) bonds from 2012 and 2017 by
using current healthy reserve fund balance. The City saves just over $100,000 in interest plus early payment
of the debt helps free up additional general fund resources toward delivering on city and community
priorities.
Council member Monica MickHager, Chair of the Finance and Budget Committee says: "I've been determined
to find ways to reduce our debt load so that we can be on firmer financial footing far into the distant future.
I'm proud of my colleagues for working through this issue as part of the 2023 budget and for staff support in
providing us salient options on a viable path forward."
For the past 20+ years, the City and nation have experienced an environment of declining interest rates.
Prior staff took advantage of the lower rates and refinanced prior construction debt and the City funded new
construction projects that benefited the infrastructure of the City of Port Townsend. Some of the financed
projects included Washington Street and Howard Street improvements, Sheridan sidewalks, the Water Street
Overlay and the SR 20 pedestrian walkway. The 2012 bond has a remaining principal balance of $585,000
and the 2017b taxable bond has a remaining balance of $1,060,000. The final payoff amount including
interest is $1,660,664.33 and will be paid in full on March 9, 2023.
The approach is part of the City's current focus on Financial Sustainability and the work underway by the
Council -appointed Financial Sustainability Task Force to ensure the City continues being financially resilient
and able to meet community needs and expectations over the coming decades. Connie Anderson, Director of
Finance and Technology Services, says: "Our budget development process last year helped us see the bigger
picture. With early debt repayment, we have new opportunities to think about how we can make better
financial decisions and achieve better outcomes for the whole community."
City Manager John Mauro adds: "This effort represents collaborative and excellent work by Council and staff.
While as a City we continue to respond and react to many challenges like deferred maintenance, we are
250 Madison oin Street - Suite 2. Poirt'rownseind - WA 98368 l www.crityofpt.us
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starting to look further ahead to anticipate and plan for the future our community wants. We don't have to
be scrappy or strategic — we can be both."
More on the debt payment/bonds and Council decision can be found here:
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The 2023 Budget can be found at:
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The Financial Sustainability Task Force and its work and meeting materials can be found here:
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