Wellington North is looking at ending this year with debt amounting to $2.3 million.
However, council has agreed to take a big bite out of that total next year by paying off its largest debenture with a final payment of about $1.2 million.
The debenture financed some major municipal projects including arena work in Mount Forest and Arthur, pumping stations and road construction.
Paying down the old debt puts Wellington North in a good position to handle $5 million in new debt expected to be needed to finance upgrades to the Arthur Waste Water Treatment Plant.