State and Local Governments Partner with Treasurer to Finance New Projects, Purchases

Local Government
Finance

OLYMPIA – This week, the Office of the State Treasurer (OST) financed over $24 million of projects through a sale of Certificates of Participation (COPs) that will provide low-interest financing for government partners to purchase equipment and vehicles, including two municipalities in Lewis and Pierce counties. 

The issuance of the COPs will enable local municipalities and state agencies (including colleges and universities) to finance needed fleet and fire emergency response vehicles, as well as other essential equipment and construction projects at favorable interest rates.

“It is always amazing to partner with communities around Washington to leverage the state’s outstanding financial position as we help fund projects and save money for local taxpayers,” said Washington State Treasurer Mike Pellicciotti. “Whether it’s new buildings, vehicles, or projects that will help enrich our higher education environments, we’re committed to making these a reality through effective management and strategic partnerships.” 

Three times a year OST pools financing requests from state agencies and local governments into the publicly sold COPs. This allows state agencies, as well as local partners in OST’s Local Option Capital Asset Lending Program (LOCAL Program) to acquire equipment and real estate under the umbrella of the state’s credit. This process leverages Washington’s strong ratings to help local governments secure financing at the lowest possible interest rates – ultimately reducing costs and saving taxpayer dollars.   

Participants in this week’s COPs sale include Western Washington University, which has plans to construct batting cages on its campus, two other state agencies, one fire protection district in Pierce County, and one school district in Lewis County. 

The Chehalis School District, located in Lewis County, will purchase three new school buses with $607,500 in low-interest financing obtained through the LOCAL Program. The Chehalis School District has financed a total of 24 school buses since first participating in 2002. The District serves more than three thousand students between its two elementary schools, one middle school, and one high school.

“Working with the State Treasurer’s Office has made it much easier to finance new vehicles and help us keep the district’s school bus fleet safely on the road,” said Heather Pinkerton, Chief Financial Officer of the Chehalis School District. “Over the years, this working partnership has allowed our district to save significantly on interest costs which, from the perspective of a steward of district funds, makes a significant difference.”

In addition to the Chehalis School District, this week’s sale of COPs also financed the purchase of a $458,900 Rosenbauer Timberwolf fire-fighting vehicle by Key Peninsula Fire Department, a fire protection district located west of Gig Harbor protecting approximately 65 square miles of mostly forested lands, homes, and shorelines.  

This was the state’s first COP issuance in Fiscal Year 2025. The program financed $112,830,000 of equipment and real estate purchases during the previous fiscal year.