The Port Townsend City Council authorized paying two bonds off early, freeing up interest savings and additional resources and to provide momentum toward greater financial sustainability.

In their March 6 business meeting, councilmembers unanimously authorized a $1.6 million payoff of Limited Tax General Obligation bonds from 2012 and 2017 by using current reserve fund balance. That action saves the city more than $100,000 in interest, plus the early debt payment will free up general fund monies on city and community priorities. The 2012 bond has a remaining principal balance of $585,000 and the 2017 bond has a remaining balance of $1,060,000.

“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,” said Councilmember Monica MickHager. “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-plus years, the city and nation have experienced an environment of declining interest rates.

Prior city staff took advantage of the lower rates and refinanced prior construction debt, and the city funded new construction projects that benefited the Port Townsend infrastructure.

Some of the financed projects included Washington Street and Howard Street improvements, Sheridan Street sidewalks, the Water Street Overlay, and the Highway 20 pedestrian walkway.

The approach is part of the city’s 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 meets community needs and expectations over the coming decades.

“Our budget development process last year helped us see the bigger picture,” said city Finance Director Connie Anderson. “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.”

“This effort represents collaborative and excellent work by council and staff,” City Manager John Mauro said. “While as a city we continue to respond and react to many challenges like deferred maintenance, we are 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,” Mauro added.

More information on the debt payment and bonds can be found at cityofpt.granicus.com/MetaViewer.phpview_id=4&clip_id=2584&meta_id=213252.