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Council accepts $22.6 million Ecology loan for biosolids project; project underway
Summary
Washougal council passed a resolution formally accepting a $22,564,700 low‑interest loan from the Washington Department of Ecology to fund the city's biosolid handling facility; total project budget is roughly $34.6 million with additional funds from the wastewater fund and congressional appropriations.
The Washougal City Council passed a resolution on Feb. 24 formally accepting a $22,564,700 subsidized low‑interest loan from the Washington State Department of Ecology to support the biosolid handling facilities project.
Scott Collins, city engineer, told the council the total project budget is $34,564,700. The financing package includes the Ecology loan (at 1.6% interest), approximately $11,000,000 from the city’s wastewater fund (system reserves/ratepayer funds) and two congressional EPA appropriations of about $1,000,000 each in fiscal years 2023 and 2024. Collins said the Ecology loan program and low interest rate are saving the city “millions of dollars” compared with conventional borrowing.
The project is under construction; Collins said expected completion is in 2027 and that project repayment and debt service were included in the rate study the council recently adopted. He described the Ecology loan as competitively awarded and said the city ranked highly in the application process.
Council members praised staff for securing the funding. Mayor Stevie and other council members said the low‑interest loan and matching funds will reduce the burden on future rate payers. The council voted to accept the loan; members present voted in favor and the motion carried unanimously.
Scott Collins and staff said construction is underway and that additional grant opportunities are being pursued for related infrastructure projects. The council packet contains the funding breakdown and the loan documents required by Ecology.
The resolution directs staff to finalize loan acceptance and continue project oversight; future council agenda items will include construction updates, change orders and any required budget amendments.
