By Randy Kugler
At the July City Council meeting, it was announced that the City had failed to be approved to proceed to the Oregon Bond Bank for the permanent debt financing for the new City Hall. In explaining this development, the Mayor stated she “remembered we were actually surprised that we were going to go to the Bond market. We thought it would be a long term relationship with Business Oregon.”
The public record of how the long term City Hall debt financing was publically described and would be paid is pretty clear:
1. November 2023 Staff Report to Council – “Debt service payments will begin when the loan is sold to the Bond Bank and permanent financing is in place.”
2. November 2023 hand out document for public explanation on City Hall financing plan – “Sold to the Bond Bank at that time a permanent rate will be set.”
3. 2025/26 Budget – “Ultimately the loan will be sold to the Oregon Bond Bank.”
4. September 2025 Council meeting explanation by City Manager – “It will get sold to the Oregon Bond Bank.”
5. 2026/27 Budget – “The City intends to convert the interim construction financing to long term debt through the Oregon Bond Bank”.
If the Mayor was surprised that the debt financing of City Hall was going to be through the Oregon Bond Bank, imagine the public’s reaction. After 3 years of an unequivocal explanation, we now find that what we were told is not happening.
The City in fact chose not to enter into a long term relationship with Business Oregon which they could have done by approving a 20 year long term loan rather than pursue a Bond sale. What the City did accept from Business Oregon was quite clear by approving an agreement concluding that “long term financing provided through the Oregon Bond Bank.”
This has become a pattern of Manzanita City government. Tell citizens one thing and then tell us or do something completely different and trust that no one will notice.
I share my observations about our City officials because their actions impact those of us who reside here. My observations may cause discomfort for City officials and routinely elicit spasms of outrage among some in the community including a fair number who don’t live in Manzanita.
Words matter. Let’s all hope that those running for City Council this November genuinely appreciate this fact when communicating with us.
