PORT ANGELES — The city will pursue an estimated $2.7 million bond issue to fund utility extensions into the southwestern urban growth area set to be annexed later this month.
The bond issue could mean increases in water rates of between 3.3 percent and 4.4 percent and increases in sewer rates of between 1.29 percent and 1.72 percent, depending on how much general fund money is used.
It would be a “councilmatic bond,” which does not involve a public vote but also does not have a dedicated funding source.
Finance Director Yvonne Ziomkowski said the bond ordinance must be approved by Aug. 2, so she needs permission to begin working on the bond issue now.
The council voted unanimously to allow pursuit of the bond issue.
Payments are flexible
Ziomkowski said the flexibility in how the bonds can be paid is one of the advantages of using councilmatic bonds versus revenue bonds.
She also described the figures she presented to the City Council on Tuesday night as “very preliminary.”
The $2.7 million figure could increase, depending upon how much city reserves are used, Ziomkowski said.
The southwestern urban growth area set to be annexed at the end of this month covers 346 acres west of the city, including land south of U.S. Highway 101.
The area extends west of the city limits at Old Joe Road about 1.5 miles to the edge of the western urban growth area opposite Reddick Road.
The property includes Lakeside Industries, Blue Mountain Leasing and the Eclipse Industrial Park, site of Port Angeles Hardwood’s proposed alder sawmill.
The annexation area has an assessed valuation of $6.5 million, not including the proposed $23 million sawmill.
The bid opening for extending utilities into the annexation area is July 13.
The preliminary project estimate is $5.35 million, including water, sewer and electricity extension costs.
The available funding is about $2.12 million, including $500,000 from Port Angeles Hardwood, Ziomkowski said.
Another $550,000 is potentially available from four other funding sources, she said.
So the remaining $2.7 million would need to be financed by the bond issue.
