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Ballard Siphon upgrade benefits from cost-saving low-interest loan
Summary
Low-interest loans would save King County an estimated $14.1 million in interest
Story
A wooden sewer pipe is a step closer to replacement after today’s unanimous adoption by the Metropolitan King County Council of an agreement with the Washington State Public Works Board for a $10 million loan at 0.5 percent interest over 20 years for the Ballard Siphon upgrade project. The Ballard Siphon is 75-year-old wooden sewer pipe in the Ballard/Interbay area that conveys up to 60 million gallons of wastewater per day toward the West Point Treatment Plant.
“The County was able to secure a very low interest rate loan that will allow the Ballard Siphon to be upgraded while creating significant savings for ratepayers, creating jobs, reducing sewer overflows, and improving water quality,” said Councilmember Larry Phillips, who represents Ballard on the County Council. “This really is a win-win for people living in the Ballard area and for the entire county.”
The Ballard Siphon project was initiated in 2006 to rehabilitate and upgrade the pipe after deformation and fatigue were detected. When complete, the project will reduce sewer overflows, helping to protect water quality in the Ship Canal and Salmon Bay.
The loan approved by the Council would save King County an estimated $14.1 million in interest payments compared to a 40-year bond at 5.5 percent interest.
Earlier this year, the Ballard Siphon was the recipient of a $31 million loan from the Washington State Department of Ecology (DOE) at 2.8 percent interest for a term of 20 years, with estimated savings over time of $41.7 million. Over 85 percent of the Ballard Siphon project will be financed with low interest loans for total savings of $55.8 million compared to conventional 40-year bond financing
The funding sources for the Ballard Siphon project are summarized below.
Source of Funding |
Amount |
Activities Funded |
State DOE Revolving |
$31,850,000 |
Applied to construction expense |
Public Works Board Loan |
$10,000,000 |
Applied to all project expenses |
WTD (bond proceeds and |
$7,030,500 |
Applied to all project expenses |
Total Project Cost |
$48,880,500 |
Approximately $33.1 construction and |