PORT ANGELES — The Port of Port Angeles has taken advantage of a state treasurer financing program to not only save money, but also make a little extra, on two pieces of equipment it purchased last fall.
These products originally were purchased with cash.
This year, after all the paperwork finalized, the port used the state treasurer’s Local Option Caption Asset Lending (LOCAL) program to take out a low-interest loan for just more than $520,000 — the total cost of the 2024 Develon Log Loader and a 2024 Ford F-150 Lightning Pro.
Taking out the loan freed up cash for the port, said Jennifer Baker, the agency’s director of finance and administration.
But beyond that, she said the port is “receiving more interest rate on the cash (that the loan provided) than we are paying on this loan.”
Now, Baker said the port hopes to continue using the LOCAL program for future relevant purchases.
The port is not the only organization to take advantage of the funding mechanism. The North Olympic Library System recently financed the Sequim Branch Library expansion and remodel with a $4.49 million loan through the program.
Two to three times a year, the state treasurer’s office will pool together smaller projects — such as fire trucks, ambulances, libraries and log loaders — and collectively finance them. That takes advantage of the state’s strong credit rating to achieve loans with lower interest rates than if municipalities had individually financed their projects.
LOCAL has been around for a couple decades. However, since Treasurer Mike Pellicciotti assumed office in 2021, he said he’s been working to promote and expand it.
“It’s a really effective way to finance important government projects that might not be financed otherwise,” he said. “What I love about this job is, when you put these financing tools in the interest of the people as opposed to the banking interests, you’re able to move things in a big way that allows for a log loader to be here in Port Angeles, or a new library to be in Sequim.
“It’s not just about numbers, it’s about actual things happening,” he added.
To promote the program and find other ways to save money for local governments and taxpayers, Pellicciotti said he prioritizes meeting in-person with organizations across the state. The last week of April, he visited the Port of Port Angeles, the Clallam County Economic Development Council and a few other organizations on the Peninsula.
“No matter where I am in the state, that’s where my constituents are,” he said.
In addition to partnering local governments with state programs, Pellicciotti said he advocates for state budgets that help maintain the state’s strong credit rating and therefore lower interest rates.
This session, as legislators sought to balance a four-year budget with a predicted $16 billion deficit, Pellicciotti advocated for maintaining a low debt ratio and protecting the state’s rainy-day fund. If the current proposed budget is signed into law, Pellicciotti would be successful.
“From that standpoint, I believe that we’re going to be able to maintain our state’s strong credit ratings and ultimately be in a situation where we can keep costs as low as possible for taxpayers in the years ahead,” he said.
Pellicciotti’s advocacy extends to the federal level, as well. As Congress debates budgets and bills, Pellicciotti said he’s been focused on advocating against reductions to Apple Health and against the elimination of tax-free municipal bonds, which he said have “a big impact on how much local taxpayers pay in taxes.”
“I don’t think that … folks here or anywhere else around the state can afford a whole lot more,” he said.
The state treasurer’s office also has spent months preparing for the “potential unlawful withholding of federal dollars by the Trump administration,” Pellicciotti said.
In total, the state receives about $27.4 billion in federal funds — with a majority of that going to pay for Apple Health. And, although the state also provides funds for Apple Health, Pellicciotti said “there is no way in which the state government can fully supplement those funds through our budget.”
Instead, his office has focused on advocating against Congressional reductions and compiling evidence to show harm that is occurring to citizens through the withholding of funds by the Trump administration. That evidence is then used in court to attain an injunction to stop those funds from being blocked.
“I told folks in our office that I hope this is the biggest colossal waste of time ever spent on any issue,” he said. “Unfortunately, it’s been some of the most efficient time.”
In an economic climate with real and threatened tariffs, rising grocery prices, housing costs and more, Pellicciotti said his office is “focused on bringing as much financial and economic stability as possible.”
“It’s going to take every bit of that financial strength to weather the waters ahead,” he said. “But I would rather be Washington state than any other state in the union right now.”
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Reporter Emma Maple can be reached by email at emma.maple@peninsuladailynews.com.
