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Public Communications (MS-11)
614 Division Street, Port Orchard, WA
Phone: 360.337.4598
 
FOR IMMEDIATE RELEASE

Date: April 21, 2015
Contact: Rebecca Pirtle, Commissioners' Office
360.337.4650 or rpirtle@co.kitsap.wa.us
No: 2015-038

County secures lower interest rate on bonds, saves $341,000 in annual financing costs

(Port Orchard, WA)  Kitsap County recently closed two debt transactions with interest rates lower than anticipated. The Sewer Utility Fund issued $17,360,000 worth of bonds at a true interest cost of 2.14 percent. Bond proceeds will be used to fund several major projects including upgrades to a number of process components at the Central Kitsap Treatment Plant, upgrades to existing pump stations, and the construction of several new pump stations throughout the county.

“I appreciate all the hard work that staff and bond counsel have put into these two issuances,” said Commissioner Robert Gelder, chair of the Kitsap County Board of Commissioners. “Not only were we able to secure a better than expected interest rate for the upcoming sewer utility improvements, we have relieved over $340,000 worth of annual debt financing costs.”

Kitsap County also refunded two outstanding higher-interest rate, limited-tax general obligation bonds issued in 2005 and 2006, totaling $21,635,000 at a true interest cost of 2.095 percent. Savings for the remaining life of the 2005 bonds is estimated to be $2,003,500 or $221,000 annually. Savings for the remaining life of the 2006 bonds is estimated to be $1,649,500 or $120,000 annually.

“I’m very pleased with the bond sale results and the interest savings, which exceeded our expectations, resulting in a savings of $3,650,000 over the life of the refunded bonds. The County’s conservative financial approach and improved bond rating had a direct impact on these excellent results,” commented Kitsap County Treasurer Meredith Green.

Projects originally funded with these two bond issues include construction of the Coroner’s facility, repairs and improvements to other facilities including the Kitsap County Fairgrounds and Courthouse, the purchase of property for the Parks Department, and improvements to the Emergency 911 system.

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Last Updated:  April 21, 2015