County OK's loan to PUD

Wahkiakum County commissioners on Tuesday voted to approve a $1.2 million loan to Wahkiakum PUD.

The PUD is planning to build a new substation at Cathlamet, and the loan will complete their financing for the $3 million project. The PUD has $1.8 million in funding for the project.

The loan will come from the investment pool managed by the county treasurer. The pool totals around $11 million and includes invested funds from the county, school and port districts, and other local governmental entities.

The loan carries an interest rate at .5 percent above the interest rate of the state local government investment pool.

Officials say this will be a lower rate than the PUD could obtain through a commercial banker, and it will be a higher return for the investment pool.

The loan is set for six years, and either side may terminate it with a year's notice to the other side.