Thursday, October 1, 2026
The Tumwater Public Works Committee has recommended the adoption of a resolution that calls for accepting a $5.25 million loan from the Washington State Department of Ecology.
The city aims to use the money for an extension of the city’s sewer system along Trosper Road.
During a committee meeting on April 23, Deputy Director of Water Resources and Sustainability Tyle Zuchowski informed the committee that the loan was secured through the Water Quality State Revolving Fund. Zuchowski noted out of 155 projects that applied for the loan, the city’s application ranked 32nd.
He described the financial agreement as a low-interest loan with a 2.7 percent interest rate over 30 years.
Currently, the city’s sewer terminates at the corner of Lambkin Street before turning north to serve the Trosper Ridge community.
The proposed project would continue the sewer westward, adding approximately 6,000 feet of sewer main along Trosper Road and into several smaller arterial streets.
Zuchowski said the main reason for the project is to enhance water quality in Percival Creek, to which runoff from Trosper drains. He noted the creek has been identified as a hot spot for fecal coliform and excessive nutrients.
The project will also connect 32 parcels to the sewer, which he said would provide a valuable case study for the city’s septic to sewer program.
Zuchowski said the city has hired engineering firm Gray & Osborne to design the project, with a target completion for the design phase by the end of this year. Staffers hope to finish construction by the first quarter of 2028.
Zuchowski added the city will also revisit its General Sewer Plan to ensure the project aligns with long-term plans.
Before the committee voted to recommend accepting the loan, Tumwater City Council member Eileen Swarthout asked if the city has accepted loans to fund similar projects before. Swarthout represents the city council on the committee.
Director of the Water Resources and Sustainability Department Dan Smith said the city has not accepted a loan for this particular kind of work but has taken loans for other projects, which last happened in 2015.
Smith also noted the 30-year term is advantageous, as it allows costs to be covered by new development over time.
With the committee’s endorsement, the resolution will now be sent to the city council for consideration. The committee agreed to place the item on the council’s consent calendar at a May 5 meeting.
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OlyBlues
This is fascinating. So the city of Tumwater that is spending upwards of $7K/month on a new Arts Coordinator position that is totally unnecessary and over $1.2 million dollars on a new luxury Parks Headquarters building and supposedly needs a loan to extend their sewer system. Hmm well would they really need a loan if they were only spending money on core city services and not so much waste?
As is that isn't enough, city officials state, "Zuchowski said the main reason for the project is to enhance water quality in Percival Creek, to which runoff from Trosper drains. He noted the creek has been identified as a hot spot for fecal coliform and excessive nutrients. " No kidding! What is the city doing to address the massive illegal transient camping and pollution along Percival Creek that the city of Olympia has allowed for years by the auto mall, Caton Drive, and all long the creek until it reaches Capitol Lake? What is the purpose of protecting small sections of this creek while ignoring the massive pollution and damage done downstream? Has the city of Tumwater contacted Olympia with concerns? If not this is a totally wasteful project.
Wednesday, May 6 Report this
JohnGear
So, just for this single project, an amortization calculator shows that borrowing $5.25M at 2.7% and paying it with 360 level monthly payments works out as follows:
Monthly Pay: $21,293.88
Total of 360 monthly payments $7,665,795.06
Total interest $2,415,795.06
If we count on 32 new parcels on sewer paying off that loan, each one would be responsible for paying property taxes of $665.43 per month for 30 years,, about $8000 a year, on top of what they pay for state taxes, school taxes, etc.
This is the Growth Ponzi Scheme at work — mortgaging the future and assuming long-term liabilities based on the (false) hope that growth will somehow make it pay. This is why so many towns and cities are functionally bankrupt — they keep borrowing based on assumed growth and an implicit assumption that future taxpayers will arrive who won’t mind paying off the loans and the interest even as they are also being hit with the upkeep and repair costs.
It’s a sugar fix of easy money (just sign here!) and short term work for construction, followed by years of budgetary pain that seems to have no cause because the Growth Ponzi Scheme depends on people just assuming that growth always pays its way, despite all the evidence to the contrary. If enough development occurs along the lines of this sewer extension to make it manageable, the amount of other liabilities to serve that development will skyrocket. Extending infrastructure on a hoped-for future development is like losing money on every sale and hoping to make it up in volume. Insanity.
Wednesday, May 6 Report this
RondaLarsonKramer
@JohnGear, thank you for that comment. You're really hitting the nail on the head. If Tumwater focused its energies on building up areas that area already served by sewer, its budget and its residents would be much better off. If it stops thinking that building a community center in the boonies where no bus service exists is a good idea, if it instead builds that community center in the center of the community, its residents in the future will be much better off.
Thursday, June 25 Report this