By Colin Staub
The Newberg Graphic
A project to refinance and simplify some of the city’s debt has resulted in nearly $900,000 in savings on what would have been interest paid over the next dozen years.
The debt stems from five Business Oregon loans that were from various public works projects, mostly water and wastewater work, and one loan that paid for the renovation of city hall in 1999.
During an April 6 City Council meeting, Public Works Director Jay Harris ran down the list of loans that were under consideration for refunding and bond issuance, which included:
- $3.5 million for the renovation of city hall debt, which the city still owed $1.1 million on in outstanding principal;
- $1 million for the Fernwood sewer pump station to serve The Greens subdivision and other developments. The city still owed $216,000.
- $4.7 million for the construction of Krall Creek reservoir, of which the city still owed $2.3 million;
- $2.8 million for the head-works system at the wastewater treatment plant (prior to the recent expansion project) of which the city owed about $900,000;
- $6.6 million for the water treatment plant, the capacity of which was doubled in 2007 and also saw the addition of Well 8. The city still owed $4.6 million.
- $2.6 million for a water supply pipeline, of which the city still owed $1.8 million.
Each loan had its own interest rate and schedule.
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