A Public Works Trust Fund Loan is a special low-interest loan that the State of Washington gives to cities, counties, and utility districts to help pay for important public projects. These projects typically involve things that everyone in a community relies on, like fixing roads, improving water systems, or upgrading sewer lines.
Here’s how it works:
- The Need – A city needs to repair a bridge or upgrade its water pipes but doesn’t have all the money upfront.
- The Loan – Instead of borrowing from a regular bank (which could be expensive), the city gets a loan from the state-run fund designed specifically for public infrastructure projects.
- Lower Costs – These loans usually have low interest rates, making them cheaper than traditional loans. This helps keep costs lower for taxpayers.
- Repayment – The city pays back the loan over time, just like a person would with a car loan or mortgage.
These loans help communities maintain and improve essential services without putting too much financial strain on local budgets.
The City of Des Moines’ outstanding Public Works Trust Funds at year-end 2024 are as follows:
- 2009 loan to provide funding for the Des Moines Transportation Gateway Project which called for arterial widening and improvements along various sections of S.216th St.
Delinquent payments shall be assessed a penalty equal to twelve percent (12%) per year.
The interest rate on the loan is 0.50%.
Loan payments are made using Real Estate Excise Tax.
