BIRCH BAY, WA – Birch Bay Water & Sewer District (BBWSD) has been awarded a $2.56 million low-interest construction loan through the Washington State Public Works Board (PWB) FY2027 Traditional Program to fund critical water system improvements that will enhance reliability, resiliency, and public health protections throughout the community.
The award marks the District’s fourth recent Public Works Board loan, continuing a successful multi-year effort to secure state funding for essential infrastructure projects while reducing costs to local ratepayers. According to the October 2, 2026 Public Works Board meeting recap, only seven water-sewer districts statewide received awards for this funding cycle, sharing $28.1 million in approved funding.
The newly funded project consists of two major water system improvements. The first will replace approximately 4,050 feet of aging asbestos cement water main along Anderson Road with durable ductile iron pipe. The second will install approximately 900 feet of new 12-inch transmission main along Blaine Road, creating an important connection between existing transmission mains and improving water delivery to the District’s primary water storage reservoir. Fire hydrants will also be added or upgraded as needed to meet current fire flow requirements.
Improving Reliability and Public Safety
The Anderson Road water main is more than 50 years old and has required six repairs in the past three years. District staff identified the line as being at the end of its useful life and in need of proactive replacement. The new ductile iron pipe is expected to provide approximately 100 years of service life while reducing leaks, service interruptions, and emergency repairs.
The Blaine Road water main connection will improve system redundancy by providing an additional route for delivering water to the Kickerville Reservoir. The project will enhance operational flexibility, improve water quality, strengthen emergency response capabilities, and provide improved flushing capabilities throughout the system.
“Replacing aging water infrastructure improves resiliency in our water distribution system. The water main on Anderson Rd is over 50 years old and made of asbestos concrete. We have repaired numerous breaks and leaks on that line in recent years. The Blaine Rd water main will improve transmission to Kickerville Reservoir, which provides better redundancy and water quality. This loan allows us to improve system reliability without burdening our customers,” said Operations Manager Mike Kim.
A Strategic Approach to Funding
District leaders credit the continued success of securing Public Works Board funding to long-term planning and the extensive work completed by District staff.
“The Washington State Department of Commerce provides valuable educational webinars that explain what the Public Works Board is seeking in each application,” said Accounts Receivable Clerk Brenda Bryce, who submitted the District’s application. “I use those insights—and the feedback we request on submitted applications—to identify what we missed, strengthen future applications, and preserve lessons for the next funding round. One of the District’s most important improvements has been advancing shovel-ready projects. Commerce wants awarded funds put to work quickly so loan repayments and interest can help support future infrastructure projects.”
“Brenda Bryce has done an exceptional job navigating the evolving Public Works Board application process,” said General Manager Sandi McMillan. “Her methodical and pragmatic approach to identifying project needs, assembling application materials, and aligning projects with funding priorities has helped the District successfully secure the lowest interest funding for four separate infrastructure projects. That achievement is a testament to years of preparation and persistence.”
The funded projects were identified through the District’s ongoing asset management and capital improvement planning efforts. Both improvements are included in the District’s long-range infrastructure planning documents and support the District’s commitment to proactive system maintenance and replacement.
Significant Savings for Ratepayers
Beyond the infrastructure benefits, the Public Works Board loan provides significant financial value for District customers.
“Access to low-interest Public Works Board financing allows us to complete critical infrastructure projects while minimizing the cost burden on ratepayers,” said Finance Manager Heather Sytsma. “When compared to traditional bonded debt or commercial financing, these loans can save our customers hundreds of thousands of dollars on individual projects and potentially millions of dollars across multiple infrastructure investments.”
District leadership estimates approximately $2 million in interest savings on the District’s four recent Public Works Board-funded projects, which total approximately $6 million in loan principal. The lower interest rates available through the Public Works Board could save ratepayers roughly $2 million compared to financing the same projects through traditional bonded debt at approximately 5% interest.
Investing in Birch Bay’s Future
The District’s latest Public Works Board award reflects its ongoing commitment to maintaining reliable, sustainable infrastructure, protecting public health, and managing costs responsibly. By replacing aging water mains before failures occur and improving system redundancy, BBWSD continues to make strategic investments that support existing customers and accommodate future growth throughout the Birch Bay community.
About Birch Bay Water & Sewer District
Birch Bay Water and Sewer District has provided water and sewer services since 1976. The District delivers potable water and provides wastewater collection and treatment for more than 8,000 connections in Whatcom County’s largest Urban Growth Area. BBWSD employs 15 full-time staff, is governed by a three-member Board of Commissioners elected by District residents, and operates with an annual budget of approximately $12 million.
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