Fiscal year 2023 Infrastructure loans and grants
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- 2023 Commerce Reports Pwb 2023 Legislative Report Final 4806B0Af 00A3 4D1F
Summary
A Washington State Public Works Board legislative report dated September 1, 2023 on fiscal year 2023 infrastructure loans and grants, submitted to the Legislature under RCW 43.155.070. The chair's letter states that the Legislature appropriated $120 million to the board in the 2022 session and reports awards of $116 million in construction funding for 36 projects, $2.8 million in pre-construction funding to five jurisdictions, $2.96 million in emergency funding to five jurisdictions and $1.8 million in broadband construction funding to one jurisdiction. It notes a $400 million appropriation for the 2023-25 biennium. The report sets out the items the statute requires, including application totals, project lists with prioritization scores, disbursements and loan repayments. It also includes program overviews and appendices listing board members and staff.
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“Fiscal year 2023 Infrastructure loans and grants.”
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Fiscal year 2023
Infrastructure loans and grants
September 1, 2023
WASHINGTON STATE Report to the Legislature
PUBLIC WORKS BOARD
Kathryn A. Gardow, PE
Public Works Board Chair
Spokane International Airport additional reservoir
project, City of Spokane, awarded in 2020.
Acknowledgments
Washington State Public Works Board
Washington State Department of Commerce,
Local Government Division
1011 Plum St. SE
P.O. Box 42525
Olympia, WA 98504-2525
Report prepared by Public Works Board Staff.
This report is available on the Public Works Board
website, www.pwb.wa.gov.
Alternate formats are available upon request by
calling 360-688-8716.
Administrative services provided by the
Washington State Department of Commerce.
Director of Commerce, Michael Fong
2023 PUBLIC WORKS BOARD LEGISLATIVE REPORT 2
2.0
Table of Contents
Letter from Public Works Board Chair .......................................................................................................... 4
Executive summary...................................................................................................................................... 5
Projects conditionally awarded in FY 2023 ................................................................................................... 6
Loan activity and estimated loan repayments ............................................................................................... 7
Programs overview: Traditional.................................................................................................................... 9
Programs overview: Broadband ................................................................................................................. 10
Appendix A: Public Works Board members ................................................................................................. 11
Appendix B: Public Works Board staff ........................................................................................................ 12
2023 PUBLIC WORKS BOARD LEGISLATIVE REPORT 3
Letter from Public Works Board Chair
On behalf of the Public Works Board, I would like to thank the Washington State Legislature for continuing to
invest in the state’s leading infrastructure program. Enacted in the 1985 legislative session, the Public Works
Board was established to create a reliable and sustainable resource for local governments to meet critical
infrastructure needs. This mission remains at the core of everything the Public Works Board does, and
continued funding is essential to maintaining and improving the quality of life for Washington state residents.
In the 2022 session, the Legislature appropriated $120 million to the Board. In accordance with RCW
43.155.070, I am pleased to submit our legislative report on Public Works Board activities in Fiscal Year 2023.
These include awards of:
$116 million in construction funding for 36 projects across the state as authorized under RCW
43.155.060.
$2.8 million in pre-construction funding to five jurisdictions to move projects towards construction
as authorized under RCW 43.155.068.
$2.96 million in emergency funding to five jurisdictions for emergency infrastructure repairs or
replacement as authorized under RCW 43.155.065.
$1.8 million in broadband construction funding to one jurisdiction to further the development of
broadband infrastructure in unserved areas of the state as authorized under RCW 43.155.160.
The Board remains committed to providing low-interest, easy-to-access funding to local governments and
offering technical assistance to improve access to our programs.
I would also like to share that the Board has developed three pillars to guide its work: financial stability, climate
resiliency, and equity. These elements are as foundational to our program as infrastructure itself. In January
2023, the Board adopted a Diversity, Equity, and Inclusion Statement, and at the May 2023 meeting, we
adopted a hardship policy that will allow the Board to provide more grants and grant/loan combinations to
meet jurisdictions’ unique needs.
Finally, with the 2023 legislative session in the rear view mirror, I would also like to thank Governor Jay Inslee
and the Legislature for restoring diverted revenues to the Public Works Assistance Account and a $400 million
appropriation for the 2023-25 biennium. These additional investments will go a long way towards helping
address infrastructure projects that have been postponed or gone unfunded due to lack of available reliable
resources over the past decade.
To discuss or learn more about the information in this report or the Public Works Board, please contact Public
Works Board Executive Director Karin Berkholtz at karin.berkholtz@commerce.wa.gov.
Kathryn A. Gardow, PE
Public Works Board Chair
2023 PUBLIC WORKS BOARD LEGISLATIVE REPORT 4
Executive summary
Overview
In the 2022 legislative session, the Legislature appropriated $120 million from the Public Works Assistance
Account for the Public Works Board (PWB) Traditional Programs. Immediately following the end of session,
the PWB approved a Traditional Programs pre-construction and construction loan cycle to be open from June
3 to September 9, 2022, and an ongoing emergency loan cycle. In addition, the PWB authorized opening a
broadband construction loan cycle, which was open from February 22, 2022 to May 28, 2022.
Authorizing legislation
Chapter 43.155.070(4)(b) and (6) RCW requires this report and details of PWB investments in the traditional
construction, pre-construction, and emergency programs. Specifically, the Legislature requires:
(i) The total number of applications and amount of funding requested for public works projects;
(ii) A list and description of projects approved in the preceding fiscal year with project scores against
the board's prioritization criteria;
(iii) The total amount of loan and grants disbursements made from the public works assistance
account in the preceding fiscal year;
(iv) The total amount of loan repayments in the preceding fiscal year for outstanding loans from the
public works assistance account;
(v) The total amount of loan repayments due for outstanding loans for each fiscal year over the
following ten-year period; and
(vi) The total amount of funds obligated and timing of when the funds were obligated in the preceding
fiscal year.
FY23 awards summary
The Public Works Board FY23 Project Map presents the geographic distribution of PWB awards in FY23 for
Pre-Construction, Construction, Emergency, and Broadband programs. Below is a summary of approved FY
2023 PWB loans and grants:
$116 million in construction funding for 36 projects as authorized under chapter 43.155.060 RCW.
Awards are conditional pending applicants successfully meeting other eligibility requirements.
$2.8 million in pre-construction funding to five jurisdictions to move projects toward construction
as authorized under chapter 43.155.068 RCW. Awards are conditional pending applicants
successfully meeting other eligibility requirements.
$2.96 million in emergency funding to five jurisdictions for emergency infrastructure repairs or
replacement as authorized under chapter 43.155.065 RCW. Awards are conditional pending
applicants successfully meeting other eligibility requirements.
$1.8 million for one state funded broadband construction loan to further the development of
broadband infrastructure in unserved areas of the state as authorized under chapter 43.155.160
RCW. Awards are conditional pending applicants successfully meeting other eligibility
requirements.
Projects meeting threshold not funded
For the 2023 traditional construction loan cycle, 11 projects that total $39.4 million in requests met the
approved threshold for funding, but were not approved due to a lack of available state-appropriated funds.
2023 PUBLIC WORKS BOARD LEGISLATIVE REPORT 5
Projects conditionally awarded in FY 2023
Table 1: Traditional programs (Construction)
Leg.
Jurisdiction County Dist. Project Name Score Loan Request
City of Lynden 2 Whatcom 42 Pine Street Bridge over Pepin Creek 84 $5,500,000
City of Bremerton 2 Kitsap 35 Anderson Creek Dam Removals 84 $2,000,000
City of Dayton Columbia 16 North 3rd Street Reconstruction 82 $880,000
Thurston County Thurston 22 Green Cove Creek Culvert Replacement 81 $4,500,000
City of Kittitas Kittitas 13 Reservoir No. 2 Improvements 80 $3,200,000
Liberty Lake Sewer & Water Dist. 1 Spokane 4 Water Main Replacements 78 $1,390,000
City of Connell Franklin 9 BNSF Utility Relocation Project 78 $850,000
Tacoma Public Utilities Pierce 31 New Fennel Creek Pump Station 77 $3,500,000
City of Cle Elum Kittitas 13 2nd Street/Rosetti Way Water Main Improvements 76 $2,841,810
City of Carnation King 12 Carnation Water Line Replacement Projects 75 $1,623,000
City of White Salmon 1 Klickitat 14 North Main/Spring St Water Improvements 75 $1,942,800
North Perry Avenue Water District Kitsap 35 Water Main Replacement 75 $650,000
Orchard Avenue Irrigation Dist. No. 6 Spokane 4 Lead Joint Pipe & Gooseneck Replacement 75 $1,936,200
Skyway WSD 1 King 37 Forest Ave S & Garden Pl S Water Main Replacement 75 $1,063,000
Soos Creek Water and Sewer District King 47 Boulevard Lanes Phase 2 Water Main Replacement 75 $3,385,520
City of Airway Heights Spokane 7 Airway Heights Water Resources Replacement 74 $5,151,000
City of Walla Walla Walla Walla 16 Water Plant Hydroelectric Upgrade 74 $1,500,000
Town of Mansfield Douglas 7 Telemetry Upgrade to Water System 74 $134,000
LOTT Clean Water Alliance Thurston 22 Digester System Improvements Phase II 74 $10,000,000
NE Sammamish Sewer & Water Dist. King 45 Lift Station 3 Interceptor CIPP Lining 74 $1,023,686
Birch Bay Water and Sewer District Whatcom 42 Point Whitehorn Water Reservoir and Pipeline 73 $1,300,000
Kittitas County Kittitas 13 Ellensburg Transfer Station 73 $10,000,000
City of Bothell King 1 35th Ave Drainage and Fish Passage Improvements 73 $1,900,000
City of Long Beach Pacific 3 Ocean Beach Boulevard Water Line Improvements 72 $1,800,000
City of Mercer Island 1 King 41 Booster Chlorination System 72 $3,284,770
Town of Wilbur Lincoln 13 Water System Project 72 $235,000
City of White Salmon 2 Klickitat 14 New Transmission Main - Phase 1 71 $1,855,100
Snohomish County Public Works 2 Snohomish 21 43rd Ave SE: Phase 1 71 $4,000,000
City of Orting Pierce 31 Orting Water Resource Recovery Facility (WRRF) 71 $10,000,000
Snoqualmie Pass Utility District 2 King 5 Water Treatment System 70 $1,500,000
City of Sequim Clallam 24 Silberhorn Deep Well #4 69 $4,830,000
King County Wastewater Treatment King 36 Interbay Forcemain and Odor Control 69 $10,000,000
City of Goldendale 1 Klickitat 14 Construction Water Line Improvement Project 68 $2,588,359
Snohomish County Public Works 1 Snohomish 21 Alderwood Mall Parkway: SR 525 to 168 St SW 68 $3,000,000
City of Maple Valley King 5 Witte Rd Roundabout 67 $1,800,000
City of Enumclaw 2 King 31 Sewer Overflow Reduction Improvements 67 $4,400,000
Funded $115,564,245
2023 PUBLIC WORKS BOARD LEGISLATIVE REPORT 6
Table 2: Traditional programs (Pre-Construction)
Leg. Loan
Jurisdiction County Dist. Project Name Score Request
City of Goldendale 2 Klickitat 14 Water Line Replacement Preconstruction 72 $298,657
City of Leavenworth Chelan 12 Water Transmission Main Replacement: Well Site to Mill St. 68 $680,000
Lake Meridian Water Dist. 1 King 33 1400 Reservoir Design 71 $725,000
King County Water Dist. 125 King 11 Macadam Rd., 51st Avenue S. & South 151st St. Pipe 71 $725,500
Lake Meridian Water Dist. 2 King 33 635 Zone Booster PRV Station 2 69 $410,000
Funded $2,839,157
Table 3: Emergency programs
Leg. Loan
Jurisdiction County Dist. Project Name Request
City of Palouse Whitman 9 F Street Bridge Broken Water Main $156,000
City of Harrington Lincoln 13 Emergency Water Infrastructure $750,700
Consolidated Irrigation Dist. 14 Walla Walla 16 Wallula Ave/Campbell Rd Well House $1,000,000
City of Walla Walla Walla Walla 16 Well #5 Emergency Repair $750,000
Town of Lind Adams 9 Well #7 Emergency Repair $300,000
Funded $2,956,700
Table 4: Broadband programs
Jurisdiction County Leg. Dist. Project Name Score Loan Request
Jefferson Co. PUD No. 1 Jefferson 24 PT Business Fiber Project 77 $1,812,041
Funded $1,812,041
Loan activity and estimated loan repayments
Table 5: FY23 Public Works Board loan activity by program
Loan program Applicants Amount requested Awards Amount Amount
obligated unfunded
Pre-construction 6 $3,839,157 5 $2,839,157 $1,000,000
Construction 47 $201,062,156 36 $115,564,245 $85,497,911
Emergency 5 $2,956,700 5 $2,956,700 $0
Broadband 1 $1,812,041 1 $1,812,041 $0
In fiscal year 2023, the PWB awarded five pre-construction project loans for $2.8 million, 36 construction
project loans for $116 million, five emergency project loans for $2.96 million, and one broadband construction
project loan for $1.8 million, benefiting 47 communities. Each application reviewed and awarded met the
PWB's threshold criteria outlined in chapter 43.155.070 RCW.
2023 PUBLIC WORKS BOARD LEGISLATIVE REPORT 7
The PWB began the 2021-23 biennium with $5 million allocated to the Emergency Program. After the 2022
supplemental budget appropriation of $120 million, the PWB recapitalized the fund. The PWB awarded $6.23
million to emergencies for the biennium, with $2.96 million of that during the FY23 reporting period.
In FY23, PWB disbursed $73,824,234 to previously awarded project loans and grants.
The level of loan repayments that deposited into the PWAA during FY23 was $83,156,105.
What are the estimated loan repayments FY24 to FY33?
In the next 10 years, the anticipated level of loan repayments due for active loans is $458,661,192. Historically,
50% of repayments that are due in July are actually received in June. Repayment calculations based on funds
drawn by June 30 are not an estimate of how much will be drawn in the next five years. Rather, calculations
represent the amount of loan repayments that the PWAA would receive within a standard repayment schedule.
Table 6: Estimated loan repayments FY24-FY33
Fiscal year Estimated loan
repayment
FY 24 $84,294,750
FY 25 $70,090,621
FY 26 $60,971,751
FY 27 $52,208,538
FY 28 $47,722,962
FY 29 $36,629,149
FY 30 $34,522,386
FY 31 $34,116,990
FY 32 $21,924,068
FY 33 $16,179,977
Total repayments $458,661,192
2023 PUBLIC WORKS BOARD LEGISLATIVE REPORT 8
Programs overview: Traditional
Traditional loan programs
Chapter 43.155.070 (4) (a) RCW requires the PWB
to balance and consider 19 policy priorities when
evaluating applications to their traditional
programs. The statute directs the PWB to consider
the geographic distribution of funds and other
factors in its funding actions. The maximum
amount of funding award that the PWB may provide
for a jurisdiction is $10 million per biennium
combined between the Construction and Pre-
construction programs.
City of Ferndale wastewater treatment plant upgrade, 2022.
Construction
Legislation enacted in 1985 (chapter 43.155 RCW), authorizes the PWB to make low interest loans and grants
to counties, cities, and special purpose districts. These awards are for projects that repair, replace, or create
domestic water systems, wastewater systems, storm water systems, roads, streets, bridges, and solid waste,
recycling, and organics facilities. Construction funding cycles are based on an open, competitive process. The
loan term is 20 years, including five years for construction completion.
Pre-construction
The Legislature authorized the pre-construction program in 1995 to promote a higher degree of readiness of
projects for construction funding. Allowed activities include design and engineering, bid-document preparation,
environmental studies, and right-of-way acquisition. Legislation authorized the PWB to offer the program as
loans and grants. The maximum award per project is $1 million. The loan term is 5 years, including 2 years for
project completion. Clients meeting the severe hardship criteria may receive 20% loan forgiveness, after
completing the project's scope of work. Clients qualifying and accepting loan forgiveness may have a 2-year
loan repayment deferral. Clients may convert from a 5-year to a 20-year term prior to their first principal
payment. The client must have secured 30% of the project's construction funding to qualify.
Emergency
The PWB began administering the emergency loan and grant program in 1988. PWB is authorized to award
emergency construction funding to repair, replace, or reconstruct a facility that will restore essential services.
Eligible projects are public works projects made necessary by a natural disaster or an immediate and emergent
threat to the public health and safety due to unforeseen or unavoidable circumstances. The emergency
program is open the entire biennium until all allocated funds are exhausted. The loan term is 20 years, or the
life of the improvement, whichever is less. The maximum emergency award per project is $1,000,000.
Interest rates
The PWB sets the interest rate for loans prior to opening each application cycle. The rate is based on the
average GO-11 Bond Index rates for the preceding 30-60 day period. The interest rates for this cycle were set
by board action at its June 3, 2022 meeting. For FY23, the interest rate on a 20-year loan ranged between
0.35% and 1.39% depending on community financial health.
2023 PUBLIC WORKS BOARD LEGISLATIVE REPORT 9
Programs overview: Broadband
Broadband loan programs
In 2019, chapter 43.155.160 RCW authorized the PWB to
establish a competitive grant and loan program to
promote the expansion of access to broadband service in
unserved areas of the state. Investments under this
authority are for the acquisition, installation, and
construction of middle mile and last mile broadband
infrastructure. Funds can also be used for strategic
planning for the deployment of broadband service.
Eligible applicants include local governments, tribes,
nonprofit and cooperative organizations, special purpose
districts, quasi-municipal corporations, limited liability Broadband infrastructure in rural Mason County, 2023
corporations organized for the purpose of expanding
broadband access, and incorporated businesses or partnerships. The PWB Broadband Program's goal is to
connect the unserved, which is now defined as those receiving less than 100 Mbps download and 20 Mbps
upload. Through a competitive process, the PWB Broadband Program emphasizes project readiness and
feasibility while also considering the role of the community in project planning. All assets or infrastructure
created utilizing PWB funding must be maintained for public use for a period of at least 15 years. The PWB
may fund up to 50% of the total project cost in non-distressed and non-Indian Country1 areas. In distressed or
Indian Country areas, the PWB may fund up to 90% of the total project cost.
Construction
The PWB Broadband construction funding program has provided state and federal funding for projects in rural
and urban counties, to connect more than 10,000 unserved homes and businesses in Washington. In the 2022
legislative session, the PWB requested statutory amendments for program improvements and to add an
emergency broadband construction program to provide funding for critical infrastructure that has been
damaged by unforeseen events. Final rules for these changes were implemented in March of 2023. The
Community Economic Revitalization Board (CERB), the Washington State Broadband Office (WSBO), and PWB
coordinate and collaborate intentionally to further the state’s broadband goal to connect every home and
business with high-speed internet access. We are meeting regularly, participating in application cycle reviews,
co-presenting at conferences and workshops, and funding broadband projects together. During this reporting
period, the PWB Broadband Construction program received one application seeking $1.8 million. The Board
approved this award of $1.8 million in state loan funding, with total project costs of $2 million.
Interest rates
The interest rate is set prior to each cycle and is based on the average daily market rate for tax-exempt
municipal bonds for the preceding 30-180 day period. The interest rates for this cycle were set by board action
at its February 18, 2022 special meeting. For FY23, the interest rate on a 15-year loan ranged between 0.21%
and 0.85% depending on community financial health.
1 Chapter 43.155.160(11)(b) RCW
2023 PUBLIC WORKS BOARD LEGISLATIVE REPORT 10
Appendix A: Public Works Board members
General Public Representatives
Board Chair, Kathryn A. Gardow, PE, Seattle
Vice Chair, Gary Rowe, PE, Port Townsend
Darlene McHenry, Liberty Lake
Monica Santos-Pinacho, Vancouver
City Representatives
The Honorable Dr. Jeralee Anderson, PE, City of Redmond Council Member
Rob Jammerman, City of Wenatchee, Public Works Director
The Honorable Ed Stern, City of Poulsbo Council Member
County Representatives
The Honorable Jerome Delvin, Benton County Commissioner
Kelly Snyder, MPA, Snohomish County Public Works Director
The Honorable Sharon Trask, Mason County Commissioner
Public Utility District Representative
Matthew Stevie, Okanogan Public Utility District Environmental Coordinator
Sewer and Water District Representatives
Justin Clary, PE, Lake Whatcom Water and Sewer District General Manager
The Honorable Lora Petso, Olympic View Water and Sewer District Commissioner
2023 PUBLIC WORKS BOARD LEGISLATIVE REPORT 11
Appendix B: Public Works Board staff
Karin Berkholtz, Executive Director
Karin.Berkholtz@Commerce.wa.gov
Phone: 360-688-0313
Izabela Kocan, Board Liaison
Izabela.Kocan@Commerce.wa.gov
Phone: 564-669-1788
Mary Miller, Communications Lead
Mary.Miller@Commerce.wa.gov
Phone: 360-688-8716
Sheila Richardson, Broadband Programs Director
Sheila.Richardson@Commerce.wa.gov
Phone: 564-999-1927
Tammy Mastro, Broadband Program Manager
Tammy.Mastro@Commerce.wa.gov
Phone: 360-791-2805
Ava Gombosky, Broadband Project Manager
Ava.Gombosky@Commerce.wa.gov
Phone: 360-338-5739
Cindy Chavez, Budget Analyst
Cindy.Chavez@Commerce.wa.gov
Phone: 360-725-3154
Maria Jawad, Management Analyst
Maria.Jawad@Commerce.wa.gov
Phone: 360-688-6008
Max Wedding, Traditional Project Manager
Max.Wedding@Commerce.wa.gov
Phone: 360-764-0392
2023 PUBLIC WORKS BOARD LEGISLATIVE REPORT 12
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