The Burden of Local Debt in Whatcom County
Citizens and municipalities face a staggering $63,000 annual interest bill on bonds used to build schools and infrastructure.
The story, cleaned up
A cleaned-up reading of the newspaper page: spelling and layout repaired, one story lifted off a crowded page. It follows the original closely but it is not a transcription. The original page is below; read it if a detail matters.
Most readers of the Post-Intelligencer in Whatcom county will be surprised to learn that nearly $63,000 a year is being sent out of the county to pay the interest on county, municipal, and school district bonds. The county is bonded for $211,500, with an annual interest of $12,575. The city of New Whatcom pays $17,010 annually on municipal bonds and recently added water bonds with an $8,625 interest charge. Fairhaven pays $13,500 annually on its bonded debt. Of the sixty-eight school districts, twenty-one are bonded for $157,800, with school district No. 1 alone carrying a heavy load. The county treasurer has taken a firm stand, refusing to sign school district bonds unless they are sold at or above par, preventing the practice of paying commissions to buyers which had previously caused losses to the district. Despite this, the total interest drain remains a heavy weight on the local economy.
“Corporations are credited with a dearth of morals, but to be dishonest and stupid both is rather too much for one's patience.”
Public debt and the financing of essential infrastructure like schools and water systems remain a contentious issue in Washington, often balancing the need for growth against the long-term cost to taxpayers. This 1893 report highlights the early, painful transition from frontier town-building to the realities of bonded municipal finance.
From readers
No comments yet. If you know something about this story — a correction, a family memory, a source — it belongs here.