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Port Orchard council OKs ordinance to use state pooled financing to reimburse purchase of 1333 Lloyd Parkway
Summary
The council approved an ordinance authorizing participation in the Washington State Treasurer’s local program to reimburse the general fund for the city’s October purchase of 1333 Lloyd Parkway, with a $2.5 million borrowing over 20 years and an expected interest-rate range of about 3.7%–4.1%.
The Port Orchard City Council approved an ordinance on Dec. 16 authorizing the city to participate in the Washington State Treasurer’s Local Program and to execute documents necessary to finance the October purchase of 1333 Lloyd Parkway.
Noah Crocker, finance staff, told the council the city will borrow $2,500,000 over a 20-year term through the state’s pooled certificate-of-participation (COP) issuance, a structure that gives small issuers access to national tax-exempt markets and typically lower interest rates. Crocker said the Treasurer’s office had provided a recent pricing range of approximately 3.7% to 4.1% and estimated roughly $200,000 in additional annual debt-service payments attributable to the borrowing.
Council Member Morrissey moved to approve the ordinance; the motion was seconded and the ordinance passed by voice vote. The transcript records a voice vote and the mayor’s announcement that the ordinance passes; no roll-call vote tally is recorded in the meeting transcript.
Crocker explained the technical financing mechanics: the city will participate in a master site-lease and financing-lease arrangement so that its $2.5 million will be included in a larger COP sale, allowing the city to access lower tax-exempt rates than it could on its own.
