Thursday, October 1, 2026
An ordinance authorizing the issuance of up to $65 million in general obligation bonds to pay for three major projects passed muster with the Tumwater City Council.
The city council unanimously voted to approve the ordinance at a meeting on Tuesday, Sept. 15. The three projects include the proposed renovation of a new city hall.
The ordinance limits the bonds to an aggregated principal amount of $65 million. Finance Director Troy Niemeyer said the amount represents a high-level estimate, as market rates fluctuate daily.
The final maturity of the bonds cannot extend past Dec. 31, 2057, while the interest rate cannot exceed 7.0 percent.
For 365 days, it delegates authority to the mayor, city administrator, and finance director to approve the method of sale and the final terms of the bond without council approval. The signature of any one of them shall be sufficient to bind the city, contract terms state.
The ordinance also requires the designated representatives to only provide a report to the city council after the execution of the bond’s sale.
Niemeyer noted that passing the ordinance does not mean all three of the projects would automatically proceed.
“Council still has to approve individual projects, so there's still some check-ins and some additional approvals needed,” he said.
The ordinance was passed after less than five minutes of discussion, though it was previously reviewed by the Tumwater Budget & Finance Committee at a meeting on Aug. 28.
The only question to arise from the council meeting was from Council member Eileen Swarthout, who asked what type of bond the city would be getting.
Niemeyer said it would be a municipal bond, which he described as a “very safe investment.”
He also mentioned a willingness to provide more information on bonds at a later date.
Niemeyere detailed the three projects that will be financed by the bonds. At the top on the list is the renovation of a new city hall.
The council authorized Mayor Leatta Dahlhoff on June 2 to place a $100,000 down payment toward the potential purchase of a commercial property at 310 Israel Road, which could serve as the new city hall.
The downpayment does not commit the city to the purchase, which is expected to cost $15.6 million based on a 2023 appraisal. The relocation would address long-standing issues of limited space in the current city hall.
Staff is also looking to secure a bond for the renovation of the North End Fire Station. The project would add more than 3,200 square feet of space to the building at an estimated cost of $5.1 million.
A bond would also fund the acquisition of two properties for the city's habitat conservation plan, which if approved by the U.S. Fish and Wildlife Service, would allow for a system that permits development of lands where endangered species occur. The plan details strategies for dealing with the impact on affected species, part of which is securing mitigation land.
As part of the council’s consent agenda, it also passed an update to the city’s financial policy that raises debt limits to match state-mandated caps.
The policy removes self-imposed restrictions put into place in 2018 that capped debt limits to 50 percent of what was allowed by the state.
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BobJacobs
I'm curious about the high amounts our local governments are paying for empty office buildings. Seems to me that the prices should be far lower since there is so little demand for office space. Are these buildings worth anything at all?
Bob Jacobs
Wednesday, September 16 Report this
griffithga
What about rehabbing and reopening the old Brewhouse? What's the future of this historic icon?
Thursday, September 17 Report this
Co_Opal
@griffithga You should ask the developer from California that owns the property. Tumwater Development LLC 259 S Randolph Ave STE 280, Brea CA, 92821
Thursday, September 17 Report this
MJGord
Did I miss it??? what's so bad about the current building? I agree the fire station always needs to be tip top but I didn't hear what's wrong with that one too.
Thursday, September 17 Report this
OlyBlues
The spending spree continues as the city of Tumwater, now maxing out their bond capabilities! A new communing engagement specialist for the police department for $128K a year? A new community services officer for $291K a year? These are really "needs" for the department to function after their massive raises Mayor Dahlhoff just approved? This in addition to promoting the city's communications manager to director who supervises himself for an additional $50K/year and a new Arts coordinator at the parks department making six figures with benefits? Yep, all must haves for the city to function. In actuality, this is government waste, excess, and overspending. Now they are maxing out bonds and stretching the city's finances to the brink to the point they need to ask for new taxes. These are signs the city needs to reign in it's spending immediately. What a shame to see the city heading down this clearly avoidable path. Mayor Dahlhoff knows better but has no true fiscal restraint or she would not be allowing this.
Saturday, September 19 Report this
BillSpencer
Good Grief that's a lot of money for that crappy office building. Wake up and smell the coffee people, the city council doesn't have a clue. The Garry Meekler Tree doesn't matter, this wasteful spending is the real problem in Tumwater.
Tuesday, September 22 Report this