Council Moves Forward with $11M Utility Bond, Launches New Community Engagement Pilot

PORT TOWNSEND, WA — The City Council authorized the first steps toward issuing $11 million in utility revenue bonds on May 4. The business meeting also saw the council unanimously support a planning project for the Jefferson County Farmers Market and proclaimed May 10-17 as Rhododendron Festival Week.

Bond authorization advances infrastructure repairs

The proposed financing is structured as a Utility Revenue Bond, meaning the debt will be repaid through utility system revenues rather than property taxes. The estimated principal amount is not expected to exceed $11 million, with approximately $9 million budgeted for sewer capital improvements and $2 million to stormwater projects. This process could take 10 months to find the right lender and secure funding. 

Possible uses for the proceeds include construction and improvement of utility infrastructure, engineering and permitting costs, and bond issuance expenses such as underwriting, legal and financial advisory fees.

The bond would carry a repayment term of 20 to 30 years, with interest rates estimated at 3.5% to 5%, depending on market conditions at the time the loan is finalized. The agenda bill notes provisions are likely to allow for early repayment after approximately 10 years.

Staff emphasized that the proposed borrowing is actually lower than earlier projections. A 2024 rate model had anticipated $15 million in sewer-related debt, but grant funding and savings from project efficiency, including engineering changes to pump impellers, reduced the current need to approximately $9 million.

In addition to the new financing, the city will evaluate whether refinancing or refunding certain outstanding city debt obligations could provide future debt service savings if market conditions prove favorable.

City council noted that failing to upgrade the lift station, a waste water facility used to “lift” sewage to prevent backup, could result in sewage overflows into Port Townsend Bay.

City Manager John Mauro noted that the city has not taken on new operating debt for five years.

A separate resolution authorizing Jefferson County to include the city in its updated solid waste management plan also passed unanimously.

Farmers market seeks infrastructure planning partnership

In a unanimous vote, the council approved a resolution supporting the Jefferson County Farmers Market’s infrastructure planning project, a community-driven effort to address growing pains at the uptown location.

Amanda Milholland, the market’s executive director, told council that opening day drew 4,977 shoppers, while peak season regularly sees between 70 and 90 vendors. However, the market faces significant challenges, including insufficient electrical capacity that forces it to turn away food vendors and inadequate restroom facilities.

“We’re renting four stalls from the community center,” she said. “That’s not sufficient for 5,000 shoppers.”

Windy days also pose problems, forcing vendors to hold down their tents while providing customer service.

The planning process, supported by the city and county, will explore potential solutions, including weather protection structures, a covered music stage and possibly additional restroom facilities. Milholland emphasized they are not asking the city to fund construction, but rather to serve as a planning partner for what they acknowledged may be “untraditional” uses of public rights-of-way. There currently are no set deadlines or plans in place. 

City launches community engagement pilot program

The council previewed a new community engagement workshop scheduled for next week at Salish Coast Elementary School.

The pilot program will replace the council’s quarterly work plan update, which is typically a PowerPoint presentation in the council chambers, with a format City Manager Mauro compared to “speed dating.” Community members will rotate between tables hosted by council members to discuss specific topics, including transportation and streets.

Mauro said the goal is to foster dialogue, acknowledging that the three-minute public comment format can feel limiting for some residents. This format will allow for open dialogue with council members.

Referring to the 3-minute public comment during typical meetings, he said,“It might not be rewarding for people to engage in this forum every time they want to talk about something.”  

Council members expressed hope that turnout would grow over time. Mayor Amy Howard noted that even a small attendance should not be viewed as a failure. “If nine people show up, great conversations happen,” she said.

The community workshop will take place at 6 pm on May 11 at Salish Coast Elementary School.