Coordinated Water System Plan - Kitsap County Government

Kitsap County May 9, 2005
Coordinated Water System Plan
Regional Supplement 2005 Revision
Loans are available for up to 100 percent of eligible project costs. Current terms for fiscal year
2002 are 0.5 percent interest rate for a 0- to 5-year term and 1.5 percent interest rate for a 6- to
20-year term.
J7.5 Public Works Trust Fund
The Public Works Trust Fund (PWTF) is a loan program set up by the Legislature to assist cities,
towns, counties, or special districts with funding for different types of public works projects.
The projects can include streets, roads, drainage systems, water systems, and sanitary sewer
systems. The emphasis of allocating funds for water and sewer systems is based on replacement
and/or repair of existing systems. No funds will be allocated to install a new system. Rather,
funds will be granted to rehabilitate or replace an existing system serving an existing population.
The loans are issued at up to 2 percent interest rate for a maximum term of 20 years for
applications requesting 95 percent funding of project. The interest rate decreases to 0.5 percent
when municipalities provide 15 percent of the project funding. Debt service coverage is not
imposed on the PWTF loan. As minimum qualifications, the PWTF does require that cities
impose a ¼ percent excise tax on the sale of real property and that they have a well-defined
capital improvement program for the utility.
J7.6 Rate Revenues
One way in which the water systems could partially fund a reuse project is by utilizing a portion
of the revenue generated from water and/or wastewater rates. A more thorough analysis of rate
impacts, due either to use of funds directly for such projects or for repayment of loans from
external sources such as those mentioned above, would be required before a decision is made to
use money generated from rates.
Appendix J Section J7 – Key Findings J7-4