POULSBO — The Poulsbo City Council moved forward Wednesday night with $6.1 million in bonding for a new city hall structure in the heart of downtown.

The council approved plans for the city to issue a 25-year general obligation debt after securing an interest rate of 4.78 percent, just .01 percent above the rate it originally sought.

The council adjusted the debt amount — down from $9.5 million — last December, and also set several contingencies, including the sales of specified properties to be used to pay for the $15.9 million project, which sits at Third Avenue and Moe Street.

The new city hall project is currently on schedule for phase two construction bidding in April, when the city hopes to take advantage of what they said is a favorable, competitive market.

“This is something we’ve been saving for, working on and investing in,” said Councilman Dale Rudolph. “If we don’t do it now, we’re basically saying ‘Get used to the hole in the ground,’ because we won’t be able to afford it later.”

The city’s ability to afford the project has been a prominent debate over the last few months, as various council committees combed through project plans to identify savings and necessities and attempted to forecast future city tax revenues amidst decreased citizen spending.

City bond counsel Jim Nelson noted the city’s unusually strict standards.

“Typically we don’t see cities set parameters this tight,” he said. “They really held our feet to the fire.”

Councilman Ed Stern said committees put their individual expertise to use, assuring a stringent, well-planned outcome.

“I feel like we divided to conquer,” he said.

Before a vote was taken Councilwoman Becky Erickson rolled out projected numbers regarding the city’s future sales and real estate excise tax revenues, both of which have seen recent declines. She warned financial due diligence will increasingly be necessary, as the city could face revenue declines of more than $1 million.

“We are going to have to be more than vigilant about what we do with our budgeting for the next 18 months,” she said.

Councilman Jeff McGinty admitted downtown was not his choice location for a new city hall — a great debate involving both politicians and citizens has occurred for years as whether to house the building in the city’s core or at a different locale.

In 2006, a citizen advisory vote targeted downtown as the desired place.

“I’ve conceded that this is where it’s going to go,” McGinty said. “I’m comfortable with the numbers I’m hearing, so, McGinty: aye.”

Councilwoman Kim Crowder also cited the building’s future location, and the citizens that voted to put it there.

“I feel really good about voting tonight that I’m doing what we promised to them,” she said.

Poulsbo Mayor Kathryn Quade said city staff members are especially grateful for the council’s forward motion, as the current city hall is a mishmash of makeshift offices, leaky ceilings and tapped out phone line capabilities.

“They’re very grateful that you’ve decided to go forward — it’s time for a new building,” she said. Quade also described the building’s style as having a “lean Norwegian aspect,” one not including superfluous amenities.

“There isn’t a lot of fluff or frills in this building,” she said.