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Refinancing government center could save $1 million

Officials hope new bonds will save more than $1 million in debt service on the Norm Dicks Government Center. - Kevan Moore | Staff photo
Officials hope new bonds will save more than $1 million in debt service on the Norm Dicks Government Center.
— image credit: Kevan Moore | Staff photo

The Bremerton City Council on Wednesday is likely to move ahead with a plan to issue general obligation bonds to save money on its portion of the Norm Dicks Government Center.

In 2003, the city partnered with the county and Kitsap County Consolidated Housing Authority, now known as Housing Kitsap, to purchase and develop the government center.

The Housing Kitsap bonds can’t be paid off until July, so the city’s new bonds will be issued sometime this year, but held in escrow until the old ones can be redeemed.

By refinancing, officials estimate a total debt service savings of $1,320,706 during the remaining life of the bonds, with the city’s savings estimated at $741,718. The new bonds would expire at the same time as the current ones.

The city can only issue up to $10 million in bonds in any given year in order to achieve a “bank qualified” rating and officials estimate that the new bond issue should come in at just under $6 million.

If the council moves forward with the plan, Financial Services Director Becky Hasart is expected to time the bond sale to get the best interest rates possible.

Moving forward with new bonds on the government center this year will also give the city a chance to refinance its line of credit for $9 million worth of debt it owes for parking facilities at the Kitsap Conference Center sometime next year.

 

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