Fiscal year 2024 Infrastructure loans and grants
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- 2024 Commercereports Pwb 2024 Legislative Report Final 4Ce9Ffa3 31B3 4Bd7 A
Summary
The Washington State Public Works Board's report to the Legislature on fiscal year 2024 infrastructure loans and grants, dated September 1, 2024, and submitted under RCW 43.155.070. It reports awards of $222.8 million in construction funding for 61 projects, $7.9 million in pre-construction funding to 16 jurisdictions, $8.5 million in emergency funding to 13 jurisdictions and $23.8 million in broadband construction funding for seven projects. It describes the $400 million appropriated for the 2023-25 biennium, loan interest rates and the hardship policy for distressed communities. Table 1 lists construction awards by legislative district, county, jurisdiction and project. The report closes with Table 6, estimating loan repayments totaling $423,173,061.53, and Appendix A, listing board members and contacts.
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Fiscal year 2024
Infrastructure loans and grants
September 1, 2024
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, set for completion in 2024.
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.
For people with disabilities, this report is available in other formats.
To submit a request, please call 360-688-8716
or use 7-1-1 to connect with that number.
Administrative services provided by the
Washington State Department of Commerce.
Director of Commerce, Michael Fong
2024 PUBLIC WORKS BOARD LEGISLATIVE REPORT 2
2.0
Table of Contents
Letter from the Public Works Board Chair .......................................................................................................4
Executive summary .........................................................................................................................................5
Programs overview: Traditional ......................................................................................................................7
Programs overview: Broadband ....................................................................................................................15
Public Works Assistance Account transfers ..................................................................................................17
Loan activity and estimated loan repayments ................................................................................................17
Appendix A: Public Works Board members and contacts ..............................................................................19
2024 PUBLIC WORKS BOARD LEGISLATIVE REPORT 3
Letter from the 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 (PWB) 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 PWB does, and continued
funding is essential to maintaining and improving the quality of life for Washington residents. During the past
four decades, the PWB has provided more than $3.5 billion in low-interest loans and more than $150 million in
grants to communities in all 39 counties of our state. In fiscal year 2024 alone, the PWB awarded $30 million in
grants across all projects and the remainder as loans.
In the 2023 session, the Legislature appropriated $400 million to the PWB for the 2023-25 biennium. In
accordance with RCW 43.155.070, I am pleased to submit our legislative report on Public Works Board
activities in fiscal year 2024. These include awards of:
• $222.8 million in construction funding for 61 projects across the state as authorized under RCW
43.155.060;
• $7.9 million in pre-construction funding to 16 jurisdictions to move projects toward construction as
authorized under RCW 43.155.068;
• $8.5 million in emergency funding to 13 jurisdictions for emergency infrastructure repairs or
replacement as authorized under RCW 43.155.065; and
• $23.8 million in broadband construction funding for seven projects to further the development of
broadband infrastructure in unserved areas of the state as authorized under RCW 43.155.160.
The PWB remains committed to providing low-interest, easy-to-access funding to local governments and
offering technical assistance to improve access to our programs.
The PWB celebrates its 40th Anniversary in 2025! Turning 40 is a meaningful milestone for the PWB and its
service to Washington communities, as it draws attention to a rich history of successes, challenges, and
partnerships that have helped implement the values and goals of the PWB. As our 40th anniversary
approaches, we are more motivated than ever before to amplify and advocate that Infrastructure is
Fundamental. Our commitment remains as solid as it was in 1985 — to value the infrastructure needs of all
Washington communities.
We have had some lean years in the past, but our funding remains in high demand and eligible project requests
continue to exceed appropriated amounts. In fiscal year 2024, the Board lacked the resources to fund 18
projects requesting $68.7 million; of those, nine reapplied for the fiscal year 2025 application cycle, which will
be discussed at the September 2024 Board meeting. Additional information regarding the disposition of those
requests will be available this winter.
To discuss or learn more about the information in this report or the Public Works Board, please contact Public
Works Board Executive Director Maria Jawad at maria.jawad@commerce.wa.gov.
Kathryn A. Gardow, PE
Public Works Board Chair
2024 PUBLIC WORKS BOARD LEGISLATIVE REPORT 4
Executive summary
Overview
The Public Works Board (PWB) deploys resources from the Public Works Assistance Account to fix critical and
failing infrastructure, while advancing environmental goals, public health, and public safety. Without this
funding, some small jurisdictions would not have had the capital to make necessary infrastructure
improvements. For large jurisdictions, they would have to apply to the private credit markets for their projects,
which spends more taxpayer dollars on financing and less on building the actual project.
The PWB acts as one of the state’s first responders for financing when a local bridge, sewer pipe, or water
treatment plant fails, jeopardizing public safety. With an average response time of two weeks, communities
rely upon the PWB’s agility to address emergency situations.
In the 2023-25 biennium, the Washington State Legislature appropriated $400 million to PWB. The PWB
allocated approximately $370 million to the construction program, with 60% of the funding available ($222.8
million) in fiscal year 2024 and 40% available in fiscal year 2025. The fiscal year 2024 construction funding
cycle was open from May 5, 2023 to July 7, 2023.
The PWB has authority to use up to 20% of the appropriation for preconstruction and emergency grants and
loans. Those resources help jurisdictions with planning and design work, and to expeditiously fix failed
infrastructure posing a threat to public health or safety. The preconstruction funding cycle was open from May
5, 2023 to March 30, 2024, and was awarded quarterly. Emergency funding was available year-round, allowing
the Public Works Board to act monthly or at special meetings when needed. In fiscal year 2024, the PWB
awarded $8.5 million to fund 13 emergency projects and another $7.9 million to fund 16 preconstruction
projects.
PWB grants and loans create waves of economic stimulus that ripple through Washington communities.
• Lower interest rates. The PWB issued loans at no greater than 1.72% in fiscal year 2024. For a $10 million
loan with a 20-year repayment period, the borrower would pay $1.8 million in interest, which costs less than
inflation. By comparison, a $10 million loan for 20 years at a 3.5% market-based interest rate would cost $4
million in interest. PWB financing saves local jurisdictions $2.2 million over the life of a 20-year loan. A
distressed community receiving a reduced rate of 0.86% would pay approximately $927,000 in interest over
20 years, saving $3.1 million in taxpayer dollars.
• No cost to apply. Applying for a PWB loan is easier, cheaper, and faster than borrowing from banks or the
bond market. The PWB charges no fees, and decisions whether to approve a loan are usually made within
months.
• Quick benefits for residents. PWB loans help start and finish projects sooner, improving the health, safety,
and well-being of residents, the local community, and the environment.
• Employment multipliers. Each project generates advanced economic activity by suppliers for the project
and subsequent economic activity when the contractor and construction workers spend their income from
the project. For every $1 million spent on construction, the average public works project will generate 5.5
direct jobs, 4.8 supplier jobs, and 6.1 “induced” jobs from contractors and their workers re-spending their
earnings. That’s 16 total jobs generated for every $1 million of construction spending.1
1
Economic Policy Institute. Updated Employment Multipliers for the U.S. Economy. Table 2. Josh Bivens. (2019)
https://www.epi.org/publication/updated-employment-multipliers-for-the-u-s-economy/ Similar (but separate) findings for surface
transportation and water/sewer projects by the Political Economy Research Institute. Job Creation Estimates. Through Proposed
Economic Stimulus Measures, Table 1. (2020) https://docs.house.gov/meetings/IF/IF18/20200916/111008/HHRG-116-IF18-20200916-
SD009.pdf Robert Pollin.
2024 PUBLIC WORKS BOARD LEGISLATIVE REPORT 5
The PWB initiated a hardship policy after careful consideration that identifies distressed and severely
distressed communities based on the county-wide unemployment rate and median household income (MHI).
The Fiscal Year 2024 hardship consideration map identifies up front if a community meets a distressed status
and is eligible for lower interest rates and a grants. Distressed communities made up more than half of the
funding awards for fiscal year 2024. Of the 90 total construction, pre-construction, and emergency awards, 51
were located in distressed or severely distressed areas. Of those 90 awards, 45 were located in rural areas.
Distressed communities are especially reliant on emergency funding. Of the 13 awards for emergency
situations, 12 of those projects were in distressed areas, and 11 were located in rural areas. Of the $8.5 million
awarded for emergency situations, the PWB issued $2.9 million in grants. Small cities, towns, counties, and
special purpose districts often do not have the staff or expertise to even apply for public works funding. To
meet that need, the PWB extends technical assistance to those jurisdictions through training webinars
throughout the year, individual assistance for jurisdictions experiencing emergency public works situations,
and workshops at the annual meeting of the Infrastructure Assistance Coordinating Council.
Authorizing legislation
Chapter 43.155.070(4)(b) and (6) RCW requires the PWB to issue this report to the Legislature annually. The
statute requires that the PWB report:
(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.
Fiscal year 2024 awards summary
Summary of approved fiscal year 2024 PWB loans and grants:
• $222.8 million in construction funding for 61 projects as authorized under chapter 43.155.060 RCW.
• $7.9 million in pre-construction funding to 16 jurisdictions to move projects toward construction as
authorized under chapter 43.155.068 RCW.
• $8.5 million in emergency funding to 13 jurisdictions for emergency infrastructure repairs or
replacement as authorized under chapter 43.155.065 RCW.
• $23.8 million for seven funded broadband construction loans (not shown on map above) to further
the development of broadband infrastructure in unserved areas of the state as authorized under
chapter 43.155.160 RCW.
2024 PUBLIC WORKS BOARD LEGISLATIVE REPORT 6
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 that the PWB may award
each biennium is $10 million. This is inclusive of the construction and pre-construction programs. “Traditional”
loan programs do not include broadband funding.
Olympic View Water and Sewer District loan payoff (Pictured, from left, District Commissioner Lora Petso;
Representative Cindy Ryu, D-Shoreline; District Commissioner John Elsasser; PWB Chair Kathryn Gardow), June 2024.
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, bridges, and solid waste, recycling,
and organics facilities. Construction funding cycles are based on an open, competitive process. The loan term
is usually 20 years, including five years for construction completion.
2024 PUBLIC WORKS BOARD LEGISLATIVE REPORT 7
Figure 1: FY 2024 construction awards by system type
Solid Waste
/Recycling/Organics Roads/Streets
3% 8%
Stormwater
8%
Sanitary Sewer
18%
Domestic Water
63%
Figure 2: FY 2024 construction awards by recipient
Water/Sewer District
33%
Cities and Towns
48%
Public Utility District
16% Counties
3%
2024 PUBLIC WORKS BOARD LEGISLATIVE REPORT 8
The Public Works Board Fiscal Year 2024 Traditional Program Project Map presents the geographic
distribution of PWB awards in fiscal year 2024 for pre-construction, construction, and emergency programs.
Figure 3: FY 2024 Traditional Program Project Map
Table 1: Traditional programs awarded projects (construction), fiscal year 2024
Leg.
County Jurisdiction Project Name Awarded
Dist.
Public Utility District #1 of Tanglewilde Mainline Replacement -
2 Thurston $10,000,000
Thurston County Phase 1
2, 22 Thurston City of Lacey Madrona & Westside pH Treatment $10,000,000
Freya Waterline and Street
3 Spokane City of Spokane $2,700,000
Improvements
4 Spokane Vera Water and Power Reservoir Recoating $3,600,000
4 Spokane Vera Water and Power Transmission Main Upgrade $4,400,000
South Fork Jenkins Creek Culverts
5 King City of Maple Valley $2,500,000
Removal and Replacement Project
Maple Valley Highway (SR 169), SE
5 King City of Maple Valley $7,500,000
260th ST to SE 253rd PL
7 Okanogan Town of Coulee Dam CIPP Sewer Main Lining $336,000
Okanogan 3rd Avenue Utility
7 Okanogan City of Okanogan $1,810,260
Improvements
7 Stevens City of Colville Reservoir #2 Replacement $3,375,800
City of West Richland - Well No. 3
8 Benton City of West Richland $3,300,000
Replacement
2024 PUBLIC WORKS BOARD LEGISLATIVE REPORT 9
Leg.
County Jurisdiction Project Name Awarded
Dist.
Tapteal 1 Booster Pump Station
8 Benton City of Richland $5,500,000
Project
Basin City Water and Sewer Basin City WSD Water Meter
9 Franklin $800,000
District Installation
9 Franklin City of Connell New Domestic Well $2,000,000
Palouse Cove Road Sidewalk
9 Whitman City of Palouse $164,341
Improvements
9 Whitman City of Colfax 2024 Water System Improvements $6,006,500
10 Island City of Langley Langley Infrastructure Project - LIP $3,500,000
Scatchet Head Water District Water
10 Island Scatchet Head Water District $600,000
System Improvements
Macadam Rd, 51st Ave S and S 151st
11 King King County Water District #125 $3,170,000
St Pipe Replacement
McMicken Heights Pump Station
11, 33 King Valley View Sewer District $3,044,000
Rehab
Painter’s Addition Emergency Egress
12 Okanogan Town of Twisp $728,016
Project
12 Okanogan Town of Twisp Glover Street Reconstruction Project $2,257,607
13 Grant Town of Coulee City Lift Station Improvements $1,596,800
13 Kittitas Kittitas County Ellensburg Transfer Station $7,662,000
13 Lincoln Lincoln County ReNew Organics-EarthWise Recycling $270,000
Reservoir 6 and Pressure Zone 5
13 Grant City of Ephrata $3,950,000
Improvements
13 Grant City of Mattawa Mattawa Well Improvements $6,903,000
14 Yakima City of Wapato Well 5 Improvements $2,033,000
Transmission Main Replacement
17 Klickitat City of White Salmon $8,045,000
Phase IIA
17 Skamania City of Stevenson Cascade Ave Utility Upgrades $2,238,000
Clark Regional Wastewater Discovery Corridor Wastewater
18, 20 Clark $10,000,000
District Transmission System Phase 2
Three Rivers Regional
19 Cowlitz Solids Handling Improvement Project $10,000,000
Wastewater Authority
Drainage Improvement District Redpath Pump Station Upgrade
19 Cowlitz $1,500,000
#1 Project
19 Cowlitz City of Kelso Kelso Drive Water Transmission Main $4,441,000
2024 PUBLIC WORKS BOARD LEGISLATIVE REPORT 10
Leg.
County Jurisdiction Project Name Awarded
Dist.
Public Utility District #1 of Skamokawa Mainline Extension
19 Wahkiakum $237,000
Wahkiakum County Project
Ridgefield Downtown Stormwater
20 Clark City of Ridgefield $2,414,000
Improvements
22 Thurston LOTT Clean Water Alliance Centrate Building Rehabilitation $10,000,000
Water Street Sewer Main Repair and
24 Jefferson City of Port Townsend $2,700,000
Replacement
Alderwood Service Line Replacement
25 Pierce Valley Water District $1,760,000
D1-A Phase 1
26 Kitsap West Sound Utility District #1 Powell Booster Pump Station $2,850,000
26 Kitsap West Sound Utility District #1 Lund Avenue Main Relocation $1,300,000
26 Kitsap West Sound Utility District #1 Bethel Road SE Main Replacement $3,101,000
Links to Opportunity Streetscape
27 Pierce City of Tacoma $2,500,000
Project
St Helens Avenue Improvement
27 Pierce City of Tacoma $1,500,000
Project
28, 29 Pierce Lakewood Water District Country Place - GAC Filtration System $4,000,000
28, 29 Pierce Lakewood Water District 88th and Pine - GAC Filtration Project $6,000,000
Auburn Way South Improvements
31 King City of Auburn $3,000,000
Hemlock Street SE to Poplar Street SE
31 Pierce City of Sumner Decant Facility $2,804,414
635 Zone Booster PRV Station 2
33 King Lake Meridian Water District $3,000,000
Project
Southwest Suburban Sewer
33, 34 King Lift Station 4, 11, and 18 Retrofit $4,844,245
District
S. 128th St Water Main Replacement
33, 34 King King County Water District #20 $6,869,558
Project
South Sunnycrest Road Watermain
37 King Skyway Water & Sewer District $1,960,000
Replacement (W30)
Skyway Water Tank No. 2 Exterior
37 King Skyway Water & Sewer District $675,000
Coating Replacement (W29)
Small Works Watermain Upgrades
37 King Skyway Water & Sewer District $1,120,000
(W10A)
Tank Nos. 3 & 4 Coating
37 King Skyway Water & Sewer District $977,000
Replacement (W24E)
Lake Whatcom Water and Sewer Division 7 Reservoir Replacement
40 Whatcom $800,000
District Project
2024 PUBLIC WORKS BOARD LEGISLATIVE REPORT 11
Leg.
County Jurisdiction Project Name Awarded
Dist.
42 Whatcom City of Lynden Maintenance Facility $5,377,000
Birch Bay Water and Sewer Birch Point Reliability and Capacity
42 Whatcom $1,532,520
District Improvements
44 Snohomish Cross Valley Water District Lee Forest Reservoir Improvements $8,557,000
Silver Lake Water and Sewer 10th Drive SE Water and Sewer
44 Snohomish $2,000,000
District Improvements
NE Sammamish Sewer and
45 King AC Pipe Replacement $5,000,000
Water District
Total $222,810,061
Pre-construction
The Legislature authorized the pre-construction program in 1995 to more quickly advance project planning.
Local governments may use pre-construction funding for 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. Preconstruction
applications are accepted year-round and awarded quarterly.
Table 2: Traditional programs awarded projects (pre-construction), fiscal year 2024
Leg.
County Jurisdiction Project Name Awarded
Dist.
7 Okanogan City of Pateros Pateros Water System Plan $100,000
N Kentucky Ave Corridor
7 Douglas City of East Wenatchee $1,000,000
Improvements
7 Okanogan Town of Twisp Twisp Water System Plan Project $150,000
Horn Rapids Landfill Expansion and
8 Benton City of Richland $500,000
Organics Processing Project
2025 Comprehensive Sewer Plan
10, 40 Skagit City of Mount Vernon $650,000
Update
Combined Sewer Separation Feasibility
10, 40 Skagit City of Mount Vernon $750,000
Study
Roosevelt Ave. Utility Improvements
12 Chelan City of Wenatchee $200,000
Planning
Butterfield WTP Improvements -
15 Franklin City of Pasco $1,000,000
Project 1
16 Walla Walla City of College Place Reservoir #4 100% Design $427,130
2024 PUBLIC WORKS BOARD LEGISLATIVE REPORT 12
Leg.
County Jurisdiction Project Name Awarded
Dist.
Puget Island Water System Pre-
19 Wahkiakum PUD #1 of Wahkiakum Co $300,000
construction
20 Clark City of Ridgefield S. Royle Road Improvements $625,000
Clallam Bay/Sekiu Phase 3 Water
24 Clallam PUD #1 of Clallam Co $175,000
Infrastructure Upgrades
26 Kitsap City of Port Orchard Bay Street Lift Station Replacement $1,000,000
Olympic View Water & Sewer Olympic View Sewer System
32 Snohomish $250,000
District Comprehensive Plan
Salmon Creek Sewer Basin
33, 34 King SW Suburban Sewer District $566,500
Rehabilitation & Repair Projects
44 Snohomish Cross Valley Water District Water Treatment Plant Upgrade $300,000
Total $7,993,630
Emergency
The PWB began an emergency loan and grant program in 1988. PWB awards emergency construction funding
to repair, replace, or reconstruct a facility that will restore essential services. Qualifying projects include
infrastructure damaged by a natural disaster or to address an immediate threat to 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 million.
Table 3: Traditional programs awarded projects (Emergency), fiscal year 2024
Leg.
County Jurisdiction Project Name Grant Loan Awarded
Dist.
Town of Emergency Repair Metaline
7 Pend Oreille $254,190.07 $254,190.07 $508,380
Metaline Falls Falls Lift Station
7 Okanogan City of Omak Sewer Line Replacement $500,000 $500,000 $1,000,000
Town of SR20 Bridge Water Main
7 Okanogan $212,500 $212,500 $425,000
Winthrop Replacement
City of East N Baker Ave Emergency
7 Douglas $26,250 $148,750 $175,000
Wenatchee Stormwater Repairs
City of Fifth & Emerson
7 Chelan $78,995.40 $447,640.60 $526,636
Wenatchee Emergency Storm Repair
Pine Street Watermain
City of
12 Chelan Replacement: Titus Rd to $60,000 $340,000 $400,000
Leavenworth
Fir St
City of Emergency Well
13 Grant $300,500 $300,500 $601,000
George Improvements
City of
13 Okanogan Sewer Line Repair $499,840 $499,840 $999,680
Electric City
2024 PUBLIC WORKS BOARD LEGISLATIVE REPORT 13
Leg.
County Jurisdiction Project Name Grant Loan Awarded
Dist.
City of East Steuben Waterline
17 Klickitat $90,000 $510,000 $600,000
Bingen Replacement - Section 1
City of Emergency Pump Station
19 Lewis $500,000 $500,000 $1,000,000
Aberdeen 4: Force Main Replacement
Water Treatment Plant
Lewis County Emergency
20 Lewis $132,250 $132,250 $264,500
WSD 6 Capacity/Reliability
Improvement
Union Ave Bridge
City of
27 Pierce Emergency Fire Damage $250,000 $750,000 $1,000,000
Tacoma
Repair
City of Hylebos Bridge Fender
27 Pierce $0 $1,000,000 $1,000,000
Tacoma Repair
Total Awards $8,500,196
Rating and ranking
In accordance with RCW 43.155.070, the PWB sets a scoring criteria and ranks applications for Construction
and Pre-construction projects after the submission deadline closes. All applicants must meet a set of
threshold criteria as defined in RCW 43.155.070 to be considered during the scoring process.
For fiscal year 2024, the PWB set the scoring criteria at their May 5, 2023 meeting. The criteria included a
maximum of 100 points for:
• Project Need – Maximum of 70 points
o System Status – Maximum of 40 points
o Situation of Project – Maximum of 20 points
o Documentation of Situation – Maximum of 10 points
• Readiness to Proceed and Local Management Effort – Maximum of 30 points
The minimum score to meet funding threshold was 65 points.
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 to 60 day period. For the fiscal year 2024 funding cycle,
the interest rate was set to 1.72% and reduced for distressed or severely distressed jurisdictions.
Unfunded projects
For the 2024 traditional public works construction loan cycle, 18 projects worth $68.7 million met the
approved threshold for funding, but were not approved due to a lack of available state-appropriated funds.
These include projects in distressed and severely distressed communities, such as the South Wenatchee
Sewer and Stormwater Lining Project, the Doe Run Lift Station Rehabilitation and Replacement Project, and
others.
2024 PUBLIC WORKS BOARD LEGISLATIVE REPORT 14
Programs overview: Broadband
Broadband loan programs
In 2019, Chapter 365, Laws of 2019 (Senate Bill 5511) 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 may also be used for strategic planning for the deployment of broadband
service. This is codified under RCW 43.155.160.
Lewis County Public Utility District preparing to install fiber at Rainbow Falls State Park, December 2023
Eligible applicants include local governments, federally recognized Indian tribes, nonprofit and cooperative
organizations, special purpose districts, quasi-municipal corporations, limited liability corporations organized
for the purpose of expanding broadband access, and incorporated businesses or partnerships. The PWB
Broadband Program's goal is to connect people not currently served by speeds of at least 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 with 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 Country2 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, connecting more than 10,000 unserved homes and businesses in Washington. During the
2022 legislative session, the PWB requested statutory amendments for program improvements and to provide
funding for critical broadband infrastructure that has been damaged by unforeseen events. Final rules for
these changes were implemented in March of 2023.
2 Chapter 43.155.160(11)(b) RCW
2024 PUBLIC WORKS BOARD LEGISLATIVE REPORT 15
Table 4: Broadband program awarded projects, fiscal year 2024
Leg.
Jurisdiction County Project Name Grant Loan Awarded
Dist.
7 Okanogan PUD #1 Okanogan Conconully FTTx $1,140,000 $2,660,000 $3,800,000
Okanogan County Okanogan County
7 Okanogan $1,500,000 $3,500,000 $5,000,000
Electric Cooperative Connect Phase Two
South Spokane
Spokane Regional
County Rural
Broadband
9 Spokane Towns Open $0 $2,000,000 $2,000,000
Development
Access Mid-mile
Authority
Connectivity
Whidbey Telephone Whidbey Telecom -
10 Island $0 $3,723,727 $3,723,727
Company Deer Lake West
Whidbey Telephone
10 Island 2024 Clinton $764,547.83 $3,730,073 $4,494,621
Company
Klick Networks, LLC
17 Klickitat Trout Lake FTTH $240,000 $560,000 $800,000
Trout Lake FTTH
Northeast Olympic
24 Jefferson PUD #1 Jefferson $1,200,000 $2,800,000 $4,000,000
FTTP
Total Awards $23,818,348
Emergency
The Emergency broadband program has $1 million available as of August 1, 2024. Eligible projects include
construction, repair, reconstruction, replacement, rehabilitation, or improvement to existing broadband
infrastructure made necessary by a natural disaster or damaged by unforeseen events. The Board grants
priority to emergency public works projects that replace existing infrastructure of the provider whose facilities
were damaged by the unforeseen event.
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 to 180 day period. The interest rates for fiscal year 2024 were set by
Board action at its June 2, 2023 meeting. For fiscal year 2024, the interest rate on a 15-year loan ranged
between 0.42% and 1.69% depending on community financial health categorized as severely distressed,
distressed, and standard.
Broadband coordination
The Community Economic Revitalization Board (CERB), the Washington State Broadband Office (WSBO), and
the PWB coordinate and collaborate intentionally to further the state’s broadband goal to connect every home
and business with high-speed internet access. The three entities meet regularly, participate in application cycle
reviews, co-present at conferences and workshops, and have co-invested in community broadband projects.
During this reporting period, the PWB Broadband Construction Program received seven applications seeking a
combined total of $23.8 million. The Board approved the awards of $23.8 million in state loan funding at its
October 2023 and May 2024 Board meetings. On May 3, 2024, the Board awarded an additional $4.8 million as
grant funding for five out of the six top-ranked projects located in distressed and severely distressed
communities.
2024 PUBLIC WORKS BOARD LEGISLATIVE REPORT 16
Public Works Assistance Account transfers
The Public Works Assistance Account (PWAA) receives revenues from the real estate excise tax (REET), public
utility tax, the solid waste tax, and PWAA loan repayments. These revenues support infrastructure financing for
local governments as well as other programs as directed by the Legislature. In the 2023-25 biennium,
programs outside the direct work of the PWB supported by funds from the PWAA include:
Conservation Commission $10,000,000
Move Ahead WA Account $114,000,000
Drinking Water State Revolving Fund 20% State Match $3,000,000
Clean Water State Revolving Fund 20% State Match $35,000,000
Community Aviation Revitalization Board (CARB) $5,000,000
TOTAL DIVERSIONS $167,000,000
Loan activity and estimated loan repayments
Table 5: Fiscal Year 2024 Public Works Board loan activity by program
Loan program Applicants Amount requested Awards Amount awarded Amount
unfunded
Pre-construction 16 $7,993,630 16 $7,993,630 $0
Construction 85 $312,224,348 61 $222,810,061 $90,596,429
Emergency 13 $8,500,196.14 13 $8,500,196 $0
Broadband 7 $25,600,000 7 $23,818,348 $5,505,379
In fiscal year 2024, the PWB awarded 16 pre-construction project loans for close to $8 million, 61 construction
project loans for $222.8 million, 13 emergency project loans for $8.5 million, and seven broadband
construction project loans for $23.8 million. Each application reviewed and awarded met the PWB's threshold
criteria outlined in chapter 43.155.070 RCW.
Each year, the PWB receives loan payments from projects funded as far back as 2004. Revenue to the Public
Works Assistance Account includes both the principle and interest from those loans. In fiscal year 2024, the
PWAA received $83,540,452.58 in loan repayments from awardees that received PWB funding in previous
cycles.
Estimated loan repayments for fiscal year 2025 to fiscal year 2034
During the next 10 years, the anticipated level of loan repayments due for active loans is $423,173,061.53.
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.
2024 PUBLIC WORKS BOARD LEGISLATIVE REPORT 17
Table 6: Estimated loan repayments FY25-FY34
Fiscal year Estimated loan
repayment
FY 25 $73,707,547.01
FY 26 $64,639,919.69
FY 27 $55,771,690.75
FY 28 $51,247,921.21
FY 29 $39,884,432.44
FY 30 $37,744,841.46
FY 31 $37,312,303.55
FY 32 $25,139,447.49
FY 33 $19,368,095.49
FY 34 $18,356,862.46
Total repayments $423,173,061.53
2024 PUBLIC WORKS BOARD LEGISLATIVE REPORT 18
Appendix A: Public Works Board members and contacts
Board Members
General Public Representatives
• Board Chair, Kathryn A. Gardow, PE, Seattle
• Vice Chair, Gary Rowe, PE, Norland
• Darlene McHenry, Liberty Lake
• Monica Santos-Pinacho, Vancouver
City Representatives
• The Honorable Dr. Jeralee Anderson, PE, City of Redmond Council Member
• The Honorable Ed Stern, City of Poulsbo Deputy Mayor
• Rob Jammerman, City of Wenatchee Public Works Director, term ended June 30, 2024.
• Josh Diekmann, City of Tacoma Transportation Division Manager, term began October 25, 2024.
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
Board Contacts
Maria Jawad, Executive Director
Maria.Jawad@Commerce.wa.gov
Phone: 360-688-6008
Marie Sullivan, Board Contract Lobbyist
marie@mspublicaffairs.com
2024 PUBLIC WORKS BOARD LEGISLATIVE REPORT 19
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