City gets the nod for a state loan
April 30, 2009 · Updated 11:20 AM
By Dennis Box-The Courier-Herald
The city of Bonney Lake received the good news Aug. 10 in the form of a $10 million loan.
Community Services Director Gary Leaf said the city received confirmation it had been approved to receive a $10 million Public Works Trust Fund loan from the state.
The city was approved for the maximum yearly amount at a .5 percent interest rate.
“We've been very successful getting trust fund loans and the interest rate is excellent,” Leaf said.
The approval process is based 60 percent on how well the city is being administered and 40 percent on the city's need, according to Leaf.
The money will be used to replace leaking water mains across the city and to complete the replacement of the sewer trunk line that connects to the Sumner treatment plant.
A portion of the sewer main was replaced last year after it ruptured Jan. 10, 2006. The fund money will be used to finish the project.
Leaf said the city has received nearly $30 million in trust fund money since 2000 for various projects around the city.
Some of the projects that have used trust fund loans include $3.5 million for the Ball Park Well and about $10 million for the upgrade of the Sumner treatment plant completed in 2005. Both Bonney Lake and Sumner share the treatment plant.
Leaf said the money will be available for the projects by the spring of 2008. The water main replacement project has already started and is about half way to completion.
“The trust fund loans are a huge source of low-cost financing,” Leaf said. “It brings a lot of economic benefit for folks on the Plateau.”
Money for the trust fund comes in large part from the real estate excise tax.