Water treatment plant improvement plan gets State funding boost

This week, Pasco City Council formally accepted a $12 million loan from the Washington State Department of Health. That money will cover significant improvements to the West Pasco Water Treatment Plant (WPWTP).

Right now, the WPWTP can process around 12 million gallons of water per day. With more and more people moving into West Pasco, particularly the Broadmoor Development Area, we need more capacity to keep drinkable tap water flowing. Upgrades to the WPWTP will boost the plant’s processing capability by 50%, to 18 million gallons of water per day.?That capacity will become a critical factor when the time comes to begin major construction work on the Butterfield Water Treatment Plant. It will also play an important role in making sure that water pressure is reliable and steady throughout Pasco.

This work has been in progress since 2019, with improvements broken into four phases. We are currently in the midst of Phase 2 improvements, while the $12 million loan from the state will fund Phase 3 and 4. In addition to increasing the amount of water processed every day, the improvements will upgrade filtration systems, adding extra layers of protection to the city water system.

Why is the City taking out a loan, instead of using reserve funds to cover the cost? ?

It has to do with the money that is available. The City of Pasco is working to utilize State and Federal program funding as much as possible for development projects that will benefit taxpayers.?The Washington State Department of Health has money set aside specifically for potable water systems, in a program called the Drinking Water State Revolving Fund (DWSRF). Since the City of Pasco is utilizing state money to pay for these improvements, that’s $12 million in City funds that can be put towards other projects that the state loan program doesn’t cover.?

The $12 million project budget is allocated as follows: approximately $50,000 is designated for public involvement efforts as well as historical, cultural, and environmental reviews. Permit costs are estimated at an additional $50,000. Construction expenses constitute the majority of the budget at nearly $8 million, with taxes projected to add another $1.1 million. Engineering work, which includes everything from the preliminary report through to final inspections, is expected to total around $1.3 million.

The budget also includes a contingency fund, providing flexibility in case of unexpected price fluctuations, delays, or other unforeseen issues.

It is important to note that this funding is structured as a loan, not a grant. However, this state loan carries a favorable 1.75% interest rate over nearly a quarter-century. The low rate alone will save Pasco taxpayers over $7 million in interest costs compared to a traditional revenue bond. Additionally, this project qualifies for principal loan forgiveness, providing an additional $5.8 million in savings.

In total, the City of Pasco will save $12.8 million over the 24-year repayment period of this $12 million state loan—while achieving significant improvements to the water treatment plant in the process.