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Port Orchard council authorizes $1 million low‑interest loan for Old Clifton Road water intertie design
Summary
The Port Orchard City Council approved a resolution authorizing the mayor to execute a $1,000,000 low‑interest loan agreement from the Washington State Public Works Board to fund preconstruction design work for an intertie between the city water system and McCormick Woods.
Port Orchard — The City Council on May 13 adopted a resolution authorizing the mayor to execute a $1,000,000 low‑interest loan from the Washington State Public Works Board to fund partial design work for the Old Clifton Road water intertie project.
Mr. Ryan, a city staff member, told the council the loan would “cover pre construction costs such as engineering and permitting” for a new connection between the city’s main water system and the McCormick Woods system that was identified in the city’s 2021 consolidation study.
The loan is intended to fund design through roughly the 60% stage, Ryan said, and staff recommended council authorization so the city can begin design work. Council Member Wharton moved to authorize the mayor to execute the agreement; Council Member Fenton seconded. The council approved the resolution by voice vote.
Finance questions during the meeting clarified how the loan will be reflected in the city budget. Director Crocker said the budget currently shows the $1,000,000 in proceeds and matching expenditures, and that debt‑service payments are expected to begin in 2027. “So what we have in the budget is the receipt of the million dollar in proceeds and the million dollars of expenditures. So we'll budget for the debt service payments, probably start in 2027,” Crocker said.
Council members and staff noted the loan program’s historically low interest rates — typically below 1% — but also warned that legislative actions this session had reduced available program funds for future projects. Ryan and Crocker said the city was able to secure funding for this project before any further program reductions took effect.
Discussion (not action) at the meeting also noted that the $1,000,000 covers only preconstruction planning and that additional funding will be needed for final design and construction. The council did not take further action beyond authorizing the mayor to execute the loan agreement.
The resolution passed by the council will allow staff to begin engineering, permitting and other preconstruction tasks intended to improve system reliability and support future growth.
