2025 Public Works Board Legislative Report — Washington State Public Works Board (October 9, 2025)
Summary
The 2025 Public Works Board Legislative Report, a report to the Legislature from the Washington State Public Works Board, dated October 9, 2025, prepared by Public Works Board staff of the Washington State Department of Commerce, Local Government Division. The letter from the Board Chair states that the Board has provided more than $3.6 billion in low-interest loans and more than $175 million in grants over four decades, and lists fiscal year 2025 awards including $172 million in construction funding for 40 projects. The closing pages give estimated loan repayments for fiscal year 2026 to fiscal year 2035, stated as nearly $413 million, and list the Board members.
Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used
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“2025 Public Works Board Legislative Report — Washington State Public Works Board (October 9, 2025).”
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2025 Public Works Board Legislative Report
Pursuant to RCW 43.155.070
October 9, 2025
Report to the Legislature
WASHINGTON STATE
PUBLIC WORKS BOARD Director Joe Nguyễn
v4
Acknowledgments
Washington State Public Works Board
Washington State Department of Commerce, Local
Government Division
Report prepared by Public Works Board staff
1011 Plum St. SE
P.O. Box 42525
Olympia, WA 98504-2525
www.commerce.wa.gov
For people with disabilities, this report is available on
request in other formats. Please call 360-725-4000 with
your request.
2025 PUBLIC WORKS BOARD LEGISLATIVE REPORT 2
Table of contents
Letter from the Public Works Board Chair ............................................................................................................3
Public Works Board 40th Anniversary … ..............................................................................................................4
Letter from the Public Works Board Chair ............................................................................................................4
Public Works Board 40th anniversary ..................................................................................................................5
Executive summary .............................................................................................................................................6
Fiscal year 2025 report...................................................................................................................................... 12
Public Works Assistance Account update .......................................................................................................... 19
Appendix A: Public Works Board members ........................................................................................................ 21
2025 PUBLIC WORKS BOARD LEGISLATIVE REPORT 3
Letter from the Public Works Board Chair
On behalf of the Public Works Board, thank you for investing in the state’s leading infrastructure financing program
benefiting communities, families, and businesses across the state. Enacted in the 1985 legislative session, the
Public Works Board (PWB) and Public Works Assistance Account (PWAA) were established to create a reliable and
sustainable resource for local governments to meet critical infrastructure needs. During the past four decades, the
PWB has provided more than $3.6 billion in low-interest loans and more than $175 million in grants to communities
in all 39 counties of our state. In fiscal year 2025 alone, the PWB awarded more than $27 million in grants to 51
distressed and severely distressed communities and about $170 million in low-interest 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 PWB activities in fiscal year 2025. These
include awards of:
• $172 million in construction funding for 40 projects across the state as authorized under RCW 43.155.060.
• $12.6 million in pre-construction funding to 29 jurisdictions to move projects towards construction as
authorized under RCW 43.155.068.
• $3.4 million in emergency funding to five jurisdictions for emergency infrastructure repairs or replacement as
authorized under RCW 43.155.065.
• $65.9 million in requests for eligible projects from 15 jurisdictions denied due to lack of funding.
The PWB provides low-interest loans to all communities and some packages that include a grant portion to
distressed and severely distressed communities. We also offer technical assistance to improve access to our
programs. The PWB traditional program funds domestic water, sanitary sewer, roads, bridges, solid waste and
stormwater projects. The PWB broadband program funds broadband construction and emergency projects.
As the demand for housing in our communities continues to grow, so too does the public works infrastructure that
underpins housing and economic growth. Clean drinking water and reliable sewer systems are needed to provide
affordable and accessible housing. Without the required public works infrastructure underground, housing units
cannot function as homes for the people living in them. Public works — often underground and unnoticed until they
fail — are undoubtedly the foundation for building successful, sustainable communities.
We celebrated the PWB’s 40th anniversary in 2025! Many of you helped us celebrate — we are especially thankful to
Reps. Peter Abbarno, Mike Steele, Steve Tharinger, Janice Zahn and Sens. Matt Boehnke, Liz Lovelett, Lisa
Wellman, and late Sen. Bill Ramos — there was so much to be proud of. A rich history of partnerships ignited the
establishment of the PWAA and shaped the magic of this essential program. We are grateful that both legislative
chambers recognized the PWB with resolutions honoring its lasting work (HR 4608 and SR 8607) last session.
We cannot rest on our laurels, however. Local governments are now grappling with a trifecta — as federal
infrastructure support has melted away, climate change is requiring changes in water systems. Local governments
must plan for population growth with an estimated need for 1.1 million new housing units. We know the Legislature
has budget challenges this biennium, yet our funding programs benefit communities across the state to support
more housing and economic development. Demand for PWB funding has always exceeded funds appropriated by
the Legislature, and we know that local governments rely heavily on this funding.
Kathryn A. Gardow, PE
Public Works Board Chair
2025 PUBLIC WORKS BOARD LEGISLATIVE REPORT 4
Public Works Board 40th anniversary
2025 marks the 40th anniversary of the creation of the Public Works Board and the Public Works Assistance
Account. The PWB is grateful that both the House and Senate recognized this national model and the lasting work
of the Board with Senate Resolution 8607 and House Resolution 4608 during the 2025 legislative session. Board
members and staff were also delighted to honor Sen. Lovelett and Rep. Abbarno as recipients of the Infrastructure
Champion awards, who played integral roles sponsoring the resolutions.
The PWB celebrated its 40th anniversary in a variety of ways and venues. Legislators, past board members and
staff, partner organizations, and more participated in the PWB's anniversary events held at the State Legislative
Building in January and March 2025. Attendees heard special remarks from State Treasurer Mike Pellicciotti,
Commerce Director Joe Nguyễn, and PWB Chair Kathryn Gardow. Attendees also learned of the PWB origin story
from Nancy Rutledge Connery, who was a staff member responsible for facilitating formation of the Public Works
Board in 1985. She provided public works reports from 1983 and 1984 that helped create the bill for establishing
the PWB, which are available on the PWB website.
Celebrating the PWB's past 40 years also set the stage for reimagining the program's trajectory for the next 40
years. Insights and ideas for the future are fueled by the motivation to transform the PWB into a stronger, more
resilient funding source accessible to all of Washington's communities that can help to expand affordable housing,
promote community vitality, and support public health and safety. The PWB is committed to spend its next 40 years
supporting local governments and communities to achieve these goals.
Public Works Board 40th anniversary kickoff event (Pictured, front row, from left, member Lora Petso, former members Monica Schmidt-
Pinacho and Pam Carter, Chair Kathryn Gardow, member Darlene McHenry, former member Diane Pottinger. Pictured, back row, from left,
former member Steve Stuart, Vice-Chair Gary Rowe, former members Kelly Snyder and Josh Diekmann, members Justin Clary and Ed Stern),
January 2025.
2025 PUBLIC WORKS BOARD LEGISLATIVE REPORT 5
Executive summary
Authorizing legislation
RCW 43.155.070 requires the PWB to issue this report to the Legislature annually and include:
The total number of applications and amount of funding requested for public works projects;
A list and description of projects approved in the preceding fiscal year with project scores against the board's
prioritization criteria;
The total amount of loan and grants disbursements made from the public works assistance account in the
preceding fiscal year;
The total amount of loan repayments in the preceding fiscal year for outstanding loans from the public works
assistance account;
The total amount of loan repayments due for outstanding loans for each fiscal year over the following ten-year
period and
The total amount of funds obligated and timing of when the funds were obligated in the preceding fiscal year.
Overview
The PWB deploys resources from the Public Works Assistance Account (PWAA) to fix critical and failing
infrastructure, while at the same time advancing environmental goals, and public health and 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.
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, jurisdictions rely
upon the PWB’s agility to address emergency situations.
Key findings
The Washington State Legislature appropriated $400 million to the Public Works Board (PWB) for the 2023-25
biennium. The PWB allocated approximately $370 million of the biennial funding to the construction program, with
60% of the funding available in fiscal year 2024 and 40% available in fiscal year 2025. For the fiscal year 2025
round of construction funding, the PWB made a minimum of $147.9 million available. The application cycle was
open from April 8, 2024 to June 28, 2024.
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 fix failed infrastructure posing a threat to
public health or safety. The pre-construction funding cycle for fiscal year 2025 was open continuously starting from
April 8, 2024, and was awarded quarterly. Emergency funding was available year-round, allowing the PWB to act
monthly or at special meetings when needed. In fiscal year 2025, the PWB awarded $3.4 million to fund five
emergency projects and another $12.6 million to fund 29 pre-construction projects.
The fiscal impact of PWB grants and loans boost local economies, create ripple effects through local jurisdictions
across Washington.
Lower interest rates — The PWB issued loans with a 1.71% interest rate in fiscal year 2025. For a $10 million loan
paid back over 20 years, the borrower pays $1.8 million in interest. The interest payments cost less than inflation.
By comparison, a $10 million loan for 20 years at a 3.5% market-based interest would cost $3.7 million in
interest. For this scenario, a PWB loan saves local jurisdictions $1.9 million over the life of a 20-year loan. A
2025 PUBLIC WORKS BOARD LEGISLATIVE REPORT 6
distressed community receiving a rate of 1.37% would pay just $1.4 million in interest over 20 years, saving $2.6
million in taxpayer dollars.
No cost to apply — Applying for a loan from the Public Works Board is easier, cheaper, and faster than borrowing
from private banks or through the bond market. The PWB charges no fees, and decisions whether to approve a
loan are 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 creates more jobs: suppliers earn business, and workers spend their
wages locally. 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 spending their earnings.
That’s 16 total jobs generated for each $1 million of construction spending. 12
Leveraging the $400 million for capital budget funding authorized in the 2023-25 biennium, the PWB has deployed
resources from the PWAA to address critical and failing infrastructure needs, while at the same time advancing
environmental goals, public health, and public safety. Without this funding, some small jurisdictions would not have
the capital to make necessary infrastructure improvements.
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
2025 hardship consideration map identifies up front if a community meets a distressed status and is eligible for
lower interest rates and partial grants. Distressed communities made up more than half of the funding awards for
fiscal year 2025. Of the 74 total construction, pre-construction, and emergency awards, 51 were located in
distressed or severely distressed areas and 55 were located in rural areas.
Distressed communities are especially reliant on emergency funding. Of the five awards for emergency projects,
four of those projects were in severely distressed, rural areas. Of the $3.4 million awarded for emergencies, the
PWB issued $1.6 million in grants. Small cities, towns, counties, and special purpose districts often do not have the
staff or expertise to even apply for funding. To meet that need, the PWB extends technical assistance to those
jurisdictions through training webinars throughout the year, individual assistance and tech-team meetings with
other state funders for jurisdictions, including at the annual Infrastructure Assistance Coordinating Council
Conference.
1 Josh Bivens, Economic Policy Institute, “Updated Employment Multipliers for the U.S. Economy,”
2 Robert Pollin, Political Economy Research Institute, “Job Creation Estimates Through Proposed Economic Stimulus Measures,”
2025 PUBLIC WORKS BOARD LEGISLATIVE REPORT 7
Public Works Assistance Account Overview
Bonds: risks and costs to the state
Historically, the Legislature has authorized PWB spending authority to provide grants and low-interest loans to local
governments for public works projects. With a significant budget shortfall, the 2025 Legislature authorized $365
million in spending authority, including $100 million in bond authority. Bond authority helps the PWB continue
supporting communities’ public works projects without delay. However, the cost of borrowing bond dollars at
market rates is more costly to the state, long-term.
Account transfers: risks and costs to communities
The $402 million transferred from the PWAA to the state general fund in 2025 was intended to help fill the state
budget deficit. However, in the long-term, such transfers leave critical projects unfunded and communities more
vulnerable to public health and safety threats. This also delays projects today, making projects more costly for
communities tomorrow. Maintaining sufficient funding for the PWB’s grant and low-interest loan program is
particularly important for distressed and severely distressed communities, who may not otherwise have access to
affordable financing options or be able to afford rising costs down the road.
Rewards of intended use
For 40 years, the PWB has been a reliable source of affordable financing options for communities, loaning more
than $3.6 billion across over 2,200 projects. All without a single loan default. PWB’s grants and low-interest loans
are a vital lifeline for local governments, particularly those in distressed and severely distressed areas. It is crucial
that the PWAA be allowed to grow as originally intended to keep communities’ utility rates low, and to help the
state keep pace with growing infrastructure financing demand.
2025 PUBLIC WORKS BOARD LEGISLATIVE REPORT 8
Fiscal year 2025 awards summary
The Public Works Board Fiscal Year 2025 Traditional Program Project Map presents the geographic distribution of
PWB awards in fiscal year 2025 for construction, pre-construction, and emergency programs.
Fiscal year 2025 traditional program project map
Summary of approved fiscal year 2025 PWB loans and grants:
• $172 million in construction funding for 40 projects as authorized under RCW 43.155.060.
• $12.6 million in pre-construction funding to 29 jurisdictions to move projects toward construction as
authorized under RCW 43.155.068.
• $3.4 million in emergency funding to five jurisdictions for emergency infrastructure repairs or replacement as
authorized under RCW 43.155.065.
Summary highlights
Public works in affordable and accessible housing
Affordable and transit-oriented housing requires affordable infrastructure. But infrastructure can be cost-prohibitive
to housing projects. Financing for infrastructure planning is key to building housing that can handle growth and
adapt to changing climate conditions. The PWAA is critical in helping Washington State plan for and deliver on the
projected 1.1 million homes needed in the next 20 years. Many PWB funded projects promote community vitality
and economic growth — including greater access to affordable housing. Examples of PWB-funded projects that
support accessing affordable housing are listed below:
City of Tacoma: Links to Opportunity Streetscape
This project improves existing sidewalks to meet ADA standards, which will increase safety and accessibility for
businesses and residents along the Sound Transit light rail corridor.
City of Bothell: 2024 Utility Relocation
This project improves water, sewer, and stormwater utility service to residential neighborhoods, commercial
areas, and educational facilities immediately west of downtown Bothell by replacing substandard water mains
prone to failure and constructing storm and sewer improvements that address issues such as inflow and
2025 PUBLIC WORKS BOARD LEGISLATIVE REPORT 9
infiltration, exfiltration, enhanced hydraulics for better conveyance, and potential risks for backups. All of the
proposed upgrades will enhance system performance to handle increased growth and perform during stronger
storm events at a higher level of service than before.
City of Walla Walla: Myra Road Extension
This project improves accessibility, connectivity, safety, capacity, and development potential for southwest Walla
Walla, southeast College Place, and south Walla Walla County by adding roundabouts and extending the
roadway, providing direct access to over 50 acres of commercial and residential zoned vacant land south of SR-
125. Private development expected subsequent to project completion includes construction of a box retail store
on 25 acres of the property and the creation of over 250 new jobs — 50 of which will be salaried family wage
jobs.
To synchronize construction of infrastructure that supports housing projects, the PWB partners with the
Department of Commerce's Connecting Housing to Infrastructure Program (CHIP), which was created in 2021 to
fund utility connections to affordable housing. The program helps local governments encourage the creation of
affordable housing by reducing or covering the cost of infrastructure associated with development. Staff housed
under the PWB and CHIP collaborate in the scoring of funding applications, leading to a more consolidated and
informed understanding of how infrastructure and housing intersect.
Public health and safety
Supporting public health and safety goals was a common motivator for many local jurisdictions that applied for
PWB funding. Recent projects funded by the PWB that exemplify a strong commitment to improving public health
and safety are listed below.
Skyway Water and Sewer District: Sewer Force Main Replacement ― Sunset Station (S22A)
This project addresses persistent emergency maintenance concerns and reduces the likelihood of sewage
overflows to the Duwamish River and ultimately the Puget Sound, upgrading municipal and industrial wastewater
facilities in urban and urbanizing areas to reduce disease-causing bacteria and viruses.
Valley View Sewer District: VVSD Pump Station Rehabilitation
This project modernizes the district's engine-generators, providing for a more resilient pumping system,
preventing pollutants from entering the Puget Sound. The project also reduces the likelihood that community
members are exposed to harmful bacteria and viruses associated with sewer backups.
2025 PUBLIC WORKS BOARD LEGISLATIVE REPORT 10
Expanding system capacity
Adding and updating public works systems such as sewer connection and extension projects can be incredibly
expensive for rural areas that have lacked resources and funding for decades.
Recent projects funded by the PWB that serve as relevant examples of communities expanding system capacity
are listed below.
Mason County Public Utility District: Manzanita Water Storage
The Union Regional Water System has insufficient water storage to connect properties in its service boundaries.
This project helps meet current needs of the community with six established water systems in the service area
and serves a critical role in the Public Utility District's (PUD) 20-year forecast for residential and commercial
development in the Rural Activity Center of Union. Without the infrastructure to support connections to the public
water supply, landowners will instead drill permit-exempt wells to make their properties developable. Investing in
public water infrastructure supports environmental goals for Mason County and allows the PUD to help grow the
customer base that pays into and benefits from the public water system.
Kitsap County Public Works: CKTP Solids and Liquid Haul Waste Upgrade
Capacity improvements in this project address negative impacts on water quality resulting from discharges of
excess nutrients. They also focus on upgrades of municipal and industrial wastewater facilities in urban and
urbanizing areas to reduce disease-causing bacteria and viruses and their effects on the Puget Sound.
Preparing and planning for future construction projects
Pre-construction, planning, and design funding is essential for starting the necessary steps to plan for
improvements that support public health and safety as well as plan for appropriate growth. This type of funding is
especially crucial for small, distressed communities. Examples include:
City of Okanogan: Wastewater Treatment Facility Improvements
PWB awards of $1 million in pre-construction funding allow for improvements that ensure future wastewater
flows and loadings can be met, and the facility can operate at full capacity without constantly piecing together
failing equipment, especially components that often fail during peak flows. This not only improves the long-term
life of the plant, but also is the type of investment needed to support growing populations and increased
wastewater treatment capacity needs.
City of Lake Stevens: 36th Street Bridge
The 36th Street Bridge has been operating with only one lane since February 2024 and is completely closed to
pedestrian and non-vehicular traffic. This funding will ensure adequate design that supports east-west
connectivity between neighborhoods, the Centennial Trail, and a major regional trail corridor as well as the Lake
Stevens Carriers Annex.
2025 PUBLIC WORKS BOARD LEGISLATIVE REPORT 11
Fiscal year 2025 report
Traditional loan programs
RCW 43.155.070 (4) (a) requires the PWB to balance and consider 19 policy priorities when evaluating applications
to their traditional program. The statute directs the PWB to consider the geographic distribution of funds and other
factors in its funding actions. The maximum award that the PWB may provide for a jurisdiction is $10 million per
biennium, combined between the construction and pre-construction programs. “Traditional” loan programs do not
include funding broadband infrastructure.
Construction
In 1985, legislation was enacted RCW 43.155 authorizing 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, stormwater 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.
Table 1: Fiscal year 2025 construction awards
Leg Grant
County Jurisdiction project name System type Total awarded
district amount
King City of Lake Forest SR104 & 40th Place NE Roundabout Road/Street $0 $2,000,000
1 Park
King 2024 Utility Replacement Project Domestic $0 $4,300,000
1 City of Bothell water
King Soos Creek Water SE 208th Street Homestead Hill AC Water Domestic $0 $4,000,000
5 and Sewer District Main Replacement Project water
Spokane Francis and Assembly Street and Utility Domestic $0 $7,300,000
6 City of Spokane Improvements water
Okanogan Water System Improvements Domestic $2,000,000
$1,000,000
7 Town of Nespelem water
Pend Ione ― Sewer Repair Sanitary $2,495,900
$1,247,950
7 Oreille Town of Ione sewer
Zone 2 East Olympia Transmission Main Domestic $4,000,000
Benton City of Kennewick $600,000
8, 16 water
11, 33, Valley View Sewer North Boulevard Park Sewer Extension Sanitary $0 $5,336,005
King
34 District sewer
Water Transmission Main Replacement: Domestic $0 $6,260,000
Chelan City of Leavenworth
12 Well Site to Mill St. Construction water
Snoqualmie Pass Sanitary Sewer Infrastructure Repairs Sanitary $0 $3,341,216
King
12, 13 Utility District sewer
Harrington ― Well 1 Replacement Domestic $1,202,000
$180,300
13 Lincoln City of Harrington water
Water Reclamation Facility Improvements Sanitary $2,000,000 $6,050,000
13 Grant City of Ephrata Construction sewer
City of Rock Island Domestic $240,000 $1,600,000
13 Douglas City of Rock Island water
Water System Improvements Domestic $2,000,000 $9,800,000
13 Grant City of Warden water
2025 PUBLIC WORKS BOARD LEGISLATIVE REPORT 12
Leg Grant
County Jurisdiction project name System type Total awarded
district amount
East Steuben Waterline Replacement Domestic $1,250,000
$187,500
14 Klickitat City of Bingen Sections 2 and 3 water
City of Toppenish Wastewater Treatment Sanitary $8,125,491
$2,000,000
14 Yakima City of Toppenish Facility sewer
City of White 2025 Buck Creek WTP Roof Restorations Domestic $1,350,000
$202,500
14 Klickitat Salmon and Improvements water
Greenhouse Gas Collection and Control Solid Waste/ $1,000,000
System Recycling/ $500,000
15 Yakima Yakima County Organics
Hillcrest Water Main Replacement Domestic $2,527,731
$1,263,865
15 Yakima City of Selah water
City of West Lift Station Retrofit Project Sanitary $500,000
$0
16 Benton Richland sewer
Walla Myra Road South Extension Project Road/Street $10,000,000
$1,000,000
16 Walla City of Walla Walla
Walla City of College Place: 6th & Birch Stormwater $3,402,450
$510,368
16 Walla City of College Place Reconstruction Project
Skamania County Underwood PZ 3 Reservoir Replacement Domestic $1,845,746
Public Utility District Project water $276,862
17 Skamania No. 1
Lexington Flood McCorkle Creek Detention Facility Raise Stormwater $10,000,000
Control Zone ― Phase 2 $1,000,000
19 Cowlitz District
Beacon Hill Water Lexington Sewer Force Main Sanitary $2,004,000
$300,600
19 Cowlitz and Sewer District sewer
Grays Farragut Pump Station Stormwater $5,000,000
$2,000,000
19 Harbor City of Aberdeen
City of Napavine ― Jefferson Pump Sanitary $2,012,500
$1,006,250
20 Lewis City of Napavine Station Upgrade sewer
Grays North Shore Levee West Segment Stormwater $10,000,000
$2,000,000
24 Harbor City of Hoquiam Construction
Public Utility District Coyle Water Main Replacement Domestic $2,677,940
No 1 of Jefferson water $1,338,970
24 Jefferson County
Kitsap County CKTP Solids and Liquid Haul Waste Sanitary $0 $10,000,000
26 Kitsap Public Works Upgrade Project sewer
Manchester Water Well 10 Manganese Treatment Project Domestic $0 $960,000
26 Kitsap District water
Lakehaven Water Lakota WWTP Solids System Sanitary $0 $9,500,000
King
30, 47 and Sewer District Improvements Phase I sewer
King County Water Reservoir Improvements and EOC Bldg. ― Domestic $0 $2,130,442
33 King District No. 20 Construction water
Valley View Sewer VVSD Pump Station Rehabilitation Sanitary $0 $2,319,200
34 King District sewer
2025 PUBLIC WORKS BOARD LEGISLATIVE REPORT 13
Leg Grant
County Jurisdiction project name System type Total awarded
district amount
Mason County Manzanita Water Storage Project Domestic $4,615,000
Public Utility District water $692,250
35 Mason No 1
Skyway Water & Sewer Force Main Replacement ― Sunset Sanitary $800,000
$0
37 King Sewer District Station (S22A) sewer
Cornwall Avenue Landfill Cleanup Solid Waste/ $7,345,000
Recycling/ $0
40 Whatcom City of Bellingham Organics
Whatcom County Water District #2, Domestic $0 $2,369,000
Whatcom County Cliffside and Old Marine Dr Water Main water
42 Whatcom Water District No. 2 Replacements
Lake Forest Park Unfunded Interagency Watermain Domestic $0 $492,771
46 King Water District Relocations water
Water Station 4 Treatment Improvements Domestic $0 $10,000,000
49 Clark City of Vancouver water
Total $21,547,415 $171,912,392
awards
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 five years, including two years for
project completion. Communities meeting the severe hardship criteria may receive 20% loan forgiveness, after
completing the project's scope of work. Communities qualifying and accepting loan forgiveness may have a two-
year loan repayment deferral, and may convert from a five-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.
During the 2023-25 biennium, there was an increase in pre-construction awards. The PWB awarded $20.5 million to
45 pre-construction and planning projects in the 2023-25 biennium. In fiscal year 2025 alone, that included 12.6
million in pre-construction funding to 29 jurisdictions. The PWB kept the pre-construction and planning cycle open
continuously while pooling applications quarterly, which improved the accessibility of the program and resulted in a
record number of planning and design projects that will also be the start of forthcoming, well-prepared construction
projects.
2025 PUBLIC WORKS BOARD LEGISLATIVE REPORT 14
Table 2: Fiscal year 2025 pre-construction awards
Leg System
County Jurisdiction Project name Grant amount Total awarded
district type
Maywood Water Reservoir Replacement Domestic
1 King City of Bothell $0 $250,000
Design water
City of Electric Electric City Small Water System Domestic $22,500
7 Grant $45,000
City Management Program water
Lift Station and Force Main Sanitary $260,500
7 Grant City of Soap Lake $521,000
Improvements Design sewer
Domestic $40,000
7 Ferry City of Republic Water System Plan $80,000
water
City of Brewster Comprehensive Water Domestic $82,300
7 Okanogan City of Brewster $164,600
System Plan water
Domestic $105,000
7 Okanogan City of Omak SR155 Bridge Water Main Improvements $210,000
water
Wastewater Treatment Facility Sanitary $500,000
7 Okanogan City of Okanogan $1,000,000
Improvements sewer
Town of Coulee Sanitary $43,500
7 Okanogan Sewer Outfall Survey $87,000
Dam sewer
Winthrop Waste Water Treatment Plant Sanitary $500,000
7 Okanogan Town of Winthrop $1,000,000
Design sewer
Pend Newport Wastewater Treatment Facility Sanitary $460,000
7 City of Newport $920,000
Oreille Improvements sewer
Domestic $13,688
7 Douglas City of Bridgeport Bridgeport Water System Plan $91,250
water
Sanitary $0
9 Columbia City of Dayton City of Dayton Land Acquisition Project $1,000,000
sewer
Wastewater Treatment Plant Aerobic Sanitary $0
10 Snohomish City of Stanwood $1,000,000
Digestion Improvements sewer
City of Grand Grand Coulee Reservoir and Booster Domestic
13 Grant $32,750 $65,500
Coulee Station Condition and Capacity Analysis water
Sanitary
13 Grant City of Soap Lake Soap Lake Wastewater Facility Plan $47,750 $95,500
sewer
Town of Coulee Coulee City Small Water System Domestic
13 Grant $29,000 $58,000
City Management Plan water
Sanitary
15 Benton City of Prosser WWTP Influent Improvements $15,105 $100,700
sewer
Walla City of College City of College Place: Drinking Water Well Domestic
16 $63,900 $426,000
Walla Place #3 Rehab Design water
City of Benton Sanitary $11,316
16 Benton Benton City Sewer Line Inspections $75,438
City sewer
Grays Domestic $40,000
19 City of Westport Westport Water Storage Study $80,000
Harbor water
Lewis County
Sanitary
20 Lewis Water and Sewer Wastewater Treatment Facility Plan $42,500 $85,000
sewer
District No 6
2025 PUBLIC WORKS BOARD LEGISLATIVE REPORT 15
Leg System
County Jurisdiction Project name Grant amount Total awarded
district type
Lewis County
Small Water System Management Plan Domestic
20 Lewis Water and Sewer $22,500 $45,000
Update water
District No 6
City of Port Sanitary
24 Jefferson Lawrence Street Storm/Sewer Separation $132,155 $264,310
Townsend sewer
PUD #1 of Clallam Bay/Sekiu Reservoir Domestic
24 Clallam $378,367 $756,735
Clallam County Improvements water
City of Port Domestic
26 Kitsap Old Clifton Road Water System Intertie $0 $1,000,000
Orchard water
Lakehaven Water
Well 10A Manganese Filtration Design Domestic
30, 47 King and Sewer $75,000 $500,000
Services water
District
King County $0
Reservoir Improvements and EOC Bldg. Domestic
33 King Water District No. $1,000,000
― Design water
20
City of Lake $0
39 Snohomish 36th Street Bridge Bridges $911,011
Stevens
Preliminary Design and Engineering
City of Sedro- Sanitary
39 Skagit Report for Wastewater Treatment Plant $112,500 $750,000
Wooley sewer
Improvements
Total
$3,030,331 $12,582,044
Awards
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 is $1 million per project.
The emergency program coordinates with other financing agencies to ensure communities can reach the most
accessible funding source. In fiscal year 2025, several projects were able to be funded by the Department of
Commerce's Emergency Rapid Response (ERR) program and leverage grant funding instead of loans. As an
example, the Public Utility District #1 of Pend Oreille secured $1 million from the ERR program and also received a
partial award of $200,000 from the PWB emergency program to jointly fund the same emergency project restoring
safe, reliable drinking water for the Town of Metaline Falls.
With potential reductions to these programs in the future, the PWB anticipates greater demand for emergency
loans and grants.
2025 PUBLIC WORKS BOARD LEGISLATIVE REPORT 16
Table 3: Fiscal year 2025 emergency awards
Leg
County Jurisdiction Project name System type Grant amount Total awarded
district
Public Utility
Pend District No. 1 of Domestic
7 Metaline Falls Transmission Line $100,000 $200,000
Oreille Pend Oreille water
County
Wastewater Treatment Plant Emergency Sanitary
14 Yakima City of Sunnyside $500,000 $1,000,000
Improvements sewer
Wastewater Treatment Plant Emergency Sanitary
14 Yakima City of Toppenish $500,000 $1,000,000
Improvements sewer
Cloney Park Stormwater Culvert
19 Cowlitz City of Longview Stormwater $500,000 $1,000,000
Replacement
39 Skagit Town of Concrete Airport Way 2025 Emergency Repairs Roads/Streets $27,750 $185,000
Total
$1,627,750 $3,385,000
awards
Rating and ranking
In accordance with RCW 43.155.070, the PWB sets 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 2025, the PWB set the scoring criteria at their March 15, 2024 meeting. The criteria included a
maximum of 100 points for:
Project Overall Need: Maximum of 70 points.
• Existing Impacts ― Maximum of 40 points.
• High Impact ― 40 points.
• Moderate Impact ― 35 points.
• Low Impact ― 30 points.
• Project Outcomes ― Maximum of 20 points.
• 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 construction projects applying in the fiscal year
2025 funding cycle, the interest rate was set to 1.71% and reduced to 1.37% for distressed or 0.86% for severely
distressed jurisdictions. For pre-construction projects applying in the fiscal year 2025 funding cycle, the interest
rate was set to 0.86% and reduced to 0.68% for distressed or 0.43% for severely distressed jurisdictions.
2025 PUBLIC WORKS BOARD LEGISLATIVE REPORT 17
Unfunded projects
For the fiscal year 2025 traditional public works construction loan cycle, 15 projects worth $66 million met the
approved threshold for funding but were not approved due to a lack of available state-appropriated funds.
Programs overview: Broadband
In 2019, Senate Bill 5511 was enacted as Chapter 365, Laws of 2019, authorizing the PWB to establish a
competitive grant and loan program to expand broadband access in unserved areas of the state. 34 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.
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 who are 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 Country 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.
Emergency
The emergency broadband program currently has $1 million available. 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 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 2025 were set by Board action at its
June 2, 2023 meeting. For fiscal year 2025, 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
2025 PUBLIC WORKS BOARD LEGISLATIVE REPORT 18
business with high-speed internet access. The three entities meet regularly, participate in application cycle reviews,
co-present at conferences and workshops, and fund broadband projects together.
Public Works Assistance Account update
The Public Works Assistance Account receives revenues from the real estate excise tax, 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.
Table 4: PWAA diversions in the 2023-25 biennium
Program Amount
Conservation Commission $10,000,000
Move Ahead WA Account $114,000,000
Drinking Water State Revolving
$3,000,000
Fund 20% State Match
Clean Water State Revolving Fund
$35,000,000
20% State Match
Community Aviation Revitalization
$5,000,000
Board (CARB)
Total Diversions $167,000,000
Loan activity and estimated loan repayments
In fiscal year 2025, the PWB awarded 40 construction project loans for $169 million, 29 pre-construction project
loans for close to $12.6 million, and five emergency project loans for $3.4 million. Each awarded application met
the PWB's threshold criteria outlined in RCW 43.155.070.
Table 5: Fiscal Year 2025 Public Works Board loan activity by program
Loan program Applicants Amount requested Awards Amount awarded Amount unfunded
Construction 58 $234,964,078 40 $169,012,992 $65,951,086
Pre-construction 29 $12,582,044 29 $12,582,044 $0
Emergency 4 $3,185,000 4 $3,185,000 $0
Broadband 0 $0 0 $0 $0
The PWB each year receives loan payments from projects funded as far back as 2004. Revenue to the PWAA
includes both the principal and interest from those loans. In fiscal year 2025, the PWAA received $83.5 million in
loan repayments from received PWB funding in previous cycles.
2025 PUBLIC WORKS BOARD LEGISLATIVE REPORT 19
Estimated loan repayments for fiscal year 2026 to fiscal year 2035
During the next 10 years, the anticipated level of loan repayments for active loans is nearly $413 million.
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 FY26-FY35
Fiscal year Estimated loan repayment
FY26 $72,410,597
FY27 $64,678,703
FY28 $58,918,172
FY29 $48,533,763
FY30 $44,206,301
FY31 $43,320,414
FY32 $31,179,328
FY33 $25,345,060
FY34 $24,270,911
FY35 $23,989,846
2025 PUBLIC WORKS BOARD LEGISLATIVE REPORT 20
Appendix A: Public Works Board members
General Public representatives
• Board Chair, Kathryn A. Gardow, PE, Seattle
• Vice-Chair, Gary Rowe, PE, Norland
• Darlene McHenry, Liberty Lake
• Monica Schmidt-Pinacho, Vancouver, term ended July 2025. Seat vacant as of July 2025.
City representatives
• The Honorable Dr. Jeralee Anderson, PE, City of Redmond Council Member
• The Honorable Ed Stern, City of Poulsbo Deputy Mayor
• Josh Diekmann, City of Tacoma Transportation Manager, term ended June 2025. Seat vacant as of June
2025.
County representatives
• The Honorable Jerome Delvin, Benton County Commissioner
• Kelly Snyder, MPA, Snohomish County Public Works Director, term ended July 2025. Seat vacant as of July
2025.
• 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
2025 PUBLIC WORKS BOARD LEGISLATIVE REPORT 21
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