This week, the Office of the State Treasurer (OST) provided access to over $79 million in low-interest loans to state and local government partners through a sale of Certificates of Participation (COPs). Proceeds from the COPs will provide financing opportunities for local municipalities and state agencies to purchase service vehicles and pay for construction projects. The COP sale will also refinance the Helen Sommers building on the capitol campus in Olympia, which was first financed in 2015, saving the state $3.3 million in debt service. Leveraging the state’s strong credit ratings to achieve low interest rates will keep long-term borrowing costs low for the state and its partners.
Participants in this week’s financing include three colleges and several state agencies, with the local portion of the sale including four cities and five fire protection districts financing a variety of vehicle purchases and projects.
“We’re working with partners at the state and local level to effectively reduce long-term costs and ensure more tax dollars can be put to use for essential community services,” said State Treasurer Mike Pellicciotti. “We must do all we can to stretch our dollars further considering the additional federal and budgeting pressures we’re facing in state and local government. Every bit can make a difference.”
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 available interest rates – ultimately reducing costs and saving taxpayer dollars.
The City of Chehalis is participating in the local portion of the sale to finance a new ambulance in support of the city’s emergency response capability, with a cost of $450,000. This will be the city's second time participating in LOCAL Program. Previous participation helped the city secure financing for two automobiles in 2001.
In Mason County, South Mason Fire & Rescue (SMFR) will participate in the LOCAL Program for the first time to obtain a low-interest loan to purchase a new 3000-gallon pumper tender which will replace an apparatus that is more than 30 years old. SMFR expects to take delivery of the pumper tender in March 2026.
“As public servants, and stewards of public funds, we work diligently to keep costs low while ensuring the highest standards of fire and medical service needs are met across the community. This is why we chose to partner with the Treasurer’s Office to obtain lower interest rates than we could otherwise,” said District Fire Chief Gregory Rudolph.
South Mason Fire & Rescue serves a population of 8,000-12,000 residents depending on the season and local events, with a response area that spans 52 square miles of Mason County including the Squaxin Island Tribe, and areas up to Thurston and Grays Harbor County lines. The district responds to approximately 1,700 calls per year which includes EMS, structural firefighting, wildland firefighting with urban interface, HAZMAT, and technical rescue.
In addition to South Mason Fire & Rescue and the City of Chehalis, this week’s COP sale participants include the cities of White Salmon for the purchase of a new street sweeper, Mount Vernon for the purchase of a new fire ladder engine, and Port Orchard to finance the acquisition of a new public works facility. Other fire districts include Lewis County Fire Protection District 2, Okanogan County Fire Protection District 3, and King County Fire Protection District 13, each financing various equipment and vehicle upgrades.
This week’s sale was the state’s second COP issuance in Fiscal Year 2026. The program financed $106,570,000 of equipment and real estate purchases during the previous fiscal year and $37,255,000 so far in Fiscal Year 2026.