OLYMPIA – This week, the Office of the State Treasurer (OST) provided access to over $40 million in low-interest cost loans to state and local government partners through a sale of Certificates of Participation (COPs). Using the state’s strong credit ratings to keep interest costs at a minimum, the sale of the COPs will provide local municipalities and state agencies with funds needed to make important equipment purchases and pay for construction projects.
Participants in this week’s financing included Edmonds Community College, the Department of Fish and Wildlife, and Department of Enterprise Services, along with five local governments. The local portion of the sale will go to two school districts, two fire districts, and two cities to finance various vehicle purchases and projects.
“Fostering partnerships between state and local governments to help keep costs low is essential to making new projects a reality, especially when facing a challenging budget environment,” said State Treasurer Mike Pellicciotti. “We’re able to offer competitive financing options thanks to Washington’s outstanding credit rating. That’s why we must continue to effectively manage the state’s strong financial position.”
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 Maple Valley, in King County, will finance $14.4 million to go toward rebuilding the city-owned Community Clubhouse at the Lake Wilderness Golf Course. The project will be home to the golf course operations, public restaurant, and community banquet space. Dave Johnson, The City of Maple Valley’s Parks & Recreation Director and Assistant City Manager, says that financing costs were kept as low as possible through a partnership with the Office of the State Treasurer.
“This is a big project that the public will use for decades to come, so we’re happy that we could obtain low-interest financing through the Treasurer’s LOCAL Program and help keep construction moving ahead as planned,” said Johnson. “The program is a good fit for the City of Maple Valley in keeping interest costs low and ensuring that we fulfill our commitment as stewards of public funds.”
In addition to The City of Maple Valley, this week’s sale of COPs also helped the City of Palouse, in Whitman County, and the Skagit County Fire Protection District 14, located in Burlington, each finance a new fire engine. In Clark County, Battleground School District 119 financed part of the cost to implement lighting and energy upgrades to comply with the Clean Building Performance Standard (CBPS) and HB1195, and Ocean Beach School District 101 in Pacific County financed a new school bus for its fleet.
This was the first time The City of Maple Valley has participated in the LOCAL Program, and the state’s first COP issuance in Fiscal Year 2026. The program financed $106,570,000 of equipment and real estate purchases during the previous fiscal year.