City Saves $107k After Debt Refinance

The City of Wenatchee will save about $107,000 after the city council recently voted unanimously to amend an ordinance related to the City's Convention Center debt.

The City of Wenatchee has just over $1.8 million in outstanding debt from the 2015 Convention Center debt issuance.

Finance Director Brad Posenjak said the city was on pace to pay the debt off early, but lodging tax revenues have taken a serious hit.

"So that prompted us to talk to our bond council, and to Cashmere Valley Bank, who are the sole holders of these bonds." explained Posenjak, "Instead of going through the full refinancing process, we were able to directly negotiate with Cashmere Valley Bank to just basically lower our interest rates."

The city is still receiving enough in lodging taxes to pay it minimum debt service, and staff are hopeful that an eventual rebound in lodging taxes will allow the city to pay off the debt earlier than it's scheduled end in 2027.