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Wastewater Treatment and Water Reuse System for Carlsborg UGA

Local Utility District Formation


What is an LUD?

Washington law (RCW 54.16) allows a Public Utility District to establish and define the boundaries of a Local Utility District (LUD) to collect assessments on properties to pay for sewer facilities.

An LUD allows private property owners to borrow money through the PUD at a lower interest rate than they could otherwise get and to repay the loan over time through assessments against the property or properties. It allows property owners to spread the cost of connecting to sewer over 20 years or more.

PUD #1 of Clallam County already administers an LUD for water service in the Carlsborg area.

What is the Process in Carlsborg?

There is currently no active LUD formation process for the Carlsborg Urban Growth Area(UGA).


On March 15, 2010, the Clallam County PUD Commissioners passed a Resolution of Intent to Form a conditional Local Utility District (LUD). The resolution was prompted in part by informal discussions and letters of support from property owners in the UGA and by the role such a resolution plays in reducing the cost of a wastewater system to property owners. The letters of support and resolution of intent to form a conditional LUD demonstrate to funding agencies that there is local, grass-root support for the project. This helps position the wastewater treatment and reuse project to be awarded grants and low-interest loans that reduce property owner assessments.

The resolution did not form an LUD and did not commit anyone to participate in an LUD or pay for a sewer system. It started the LUD formation process with a study to determine what different types of properties might expect to pay for sewer service.

By October 2010, several land owners in Carlsborg submitted advisory petitions to the PUD Commissioners. In the advisory petitions, these land owners declared their nonbinding support of the project. They proposed steps for the PUD to take toward deciding on the final LUD boundary and whether or not to form the LUD. The advisory petition included a proposed LUD boundary. Over ten percent of the land owners within the proposed LUD boundary signed the advisory petition. The PUD Commissioners accepted the advisory petitions on November 22, 2010.

On December 20, 2011, the Clallam County Board of Commissioners signed a resolution (Resolution 78, 2011) that committed Clallam County to fund repayment of the $10 million Public Works Trust Fund loan that the PUD had been authorized to receive in May 2011.  The County committed a part of their Opportunity Fund to repay the PWTF loan, which would be passed through the PUD.  The Opportunity Fund is a fund that can only be used to finance public infrastructure such as the Carlsborg wastewater treatment and water reuse project.   The County’s commitment to use the Opportunity Funds to repay the PWTF loan removed the need to collect specific payments for connection to the sewer system and the need to assess property owners for repaying back the loan; therefore, formation of an LUD was no longer necessary.  On February 13, 2012, the PUD passed a resolution not to proceed with LUD formation since there was no longer a need to form one.


Last updated November 20, 2012