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Council approves refinance of $2.4M interfund loans to save solid waste utility costs
Summary
The council authorized refinancing interfund loans between the water utility and solid waste utility to extend terms and realize near-term savings; staff said the restructuring will fund a compactor/baler purchase and is expected to save about $360,000 annually in transport costs.
Port Angeles — The City Council approved a resolution authorizing refinancing of interfund loans from the water utility fund to the solid waste utility fund, a move staff said will reduce operational transport costs and finance purchase of a compactor/baler.
Director Carrizoza explained the change originated during the 2022 transition of transfer station services into city operations. Staff recommended combining two interfund loans, extending the loan term to eight years and refinancing so that savings in the first two years would cover a compactor/baler purchase. Carrizoza said the equipment purchase and operational changes are estimated to yield long-term savings of about $360,000 annually by reducing transport frequency.
Councilmember (speaker 14) moved to pass a resolution adopting the refinance of interfund loans between the water utility fund and the solid waste utility fund in the amount of $2,400,000; the motion was seconded and passed unanimously. Council members noted refinancing is similar to seeking better interest rates on a home loan and that savings would be passed to ratepayers through reduced rate pressure.
What happens next: staff will implement refinancing and proceed with the planned equipment purchase; staff said the savings were already incorporated into recently adopted rates.
