Press Release: City Retires Debt Two Years Early

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CITY OF NEWBERG RETIRES DEBT TWO YEARS EARLY, SAVING RESIDENTS $300K IN INTEREST
May 27, 2026
(NEWBERG, OR) - The City of Newberg has officially paid off a piece of long-term debt two full years ahead of schedule, keeping $300,000 of projected interest payments in residents’ pockets, and eliminating a charge that has appeared on utility billing statements for more than a decade.

Finance Director Kady Strode signed off on the early debt retirement last week, completing the payoff of a loan tied to the construction of a Communications Tower at the Newberg-Dundee Police Department. The tower is a piece of critical safety infrastructure that strengthens dispatcher signal coverage, helping emergency responders reach the right people faster when every second matters.

Residents may recognize the “Communications Officer fee” on their billing statements, a line item of about $2.75 that first appeared in 2014 to fund two full-time dispatch positions. Beginning July 1, 2026 the City will be able to absorb those two dispatch FTEs into the General Fund. Part of the fee was also paying for the loan service on the Communications Tower debt. With the loan now fully retired, so is the fee. Residents will see the Communications Officer fee removed from their billing statements beginning July 1, 2026.

The early payoff didn't happen by chance. For the past three years, the City has been steadily building a dedicated sinking fund, setting money aside with the specific intention of retiring this debt before its due date. That disciplined approach was bolstered by additional revenue from the sale of the Butler Property and from traffic violation fees generated by the Photo Red Light and Speed Camera program installed at the end of 2025, as well as payments for School Resource Officers from the School District. Together, those resources pushed the city across the finish line ahead of schedule.

This is the second time Newberg has retired a piece of debt early. These payoffs reflect a consistent commitment by the City to responsible, conservative debt management, prioritizing the community’s long-term financial health over meeting minimum obligations.

Watch the Budget Committee Meeting to Learn More

Missed the Budget Committee Meeting on May 26? A recording is now available on the City of Newberg's YouTube channel. The session offers a useful look at where Newberg stands at the midpoint of our biennium, and the financial direction City leadership has planned for the road ahead. Check out the video below or click this link: https://youtu.be/5k2nDPQn53U?si=gRKR6rJfimfWaOWe 



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Download this press release.