RTID Funding Levels
King County	$7.6 billion
Pierce County	$3.3 billion
Snohomish County	$2.4 billion
Total	$13.2 billion

Total Funding With State Bonding
	June 2004	All Three Counties	King  County	Pierce County	Snohomish County
	0.2% Sales Tax	4.0	2.4	0.9	0.7
	0.1% RTA Sales Tax	1.9	1.2	0.5	0.3
	$75 License Fee	3.8	1.9	1.0	0.8
	0.3% MVET	2.3	1.4	0.5	0.3
	2.8¢ Local Option Gas Tax	1.2	0.6	0.3	0.2
	Total	13.2	7.6	3.3	2.4
Financing assumptions:  -Total assumes $7.5 billion in bond sales. -Bonds issued will be 30-year bonds with interest-only payments for five years on most bond sales. -Bond sales limited so that the revenue to debt service coverage ratio remains above 1.20. -A minimum balance is maintained of at least six-months debt service. -Funding levels assume expenditures will occur at the same rate as reflected in the May 6, 2004  proposed project list for King County, the April 27, 2004  list for Pierce County  and the May 21, 2004  list for Snohomish County.

The King County April 29, 2004 project list was based on several assumptions regarding how Sound Transit revenue could be used including:

• A $180M investment in the I-405 and SR 520 corridors,

• An $80M investment in the SR 99 corridor, and

• A $60M investment in the SR 522 corridor

Further work with Sound Transit staff concluded that some investment in the I-405 corridor could be made with Sound Transit revenue under existing Sound Transit policies.  However, a Sound Transit investment in the SR 520, SR 99 and SR 522 corridors was not currently feasible.   

In order to maintain the adopted project list, some project expenditures were delayed on several key projects.  Delaying these expenditures in turn made it possible to delay some bond debt payments allowing those funds to be spent on projects.  This resulted in the project list remaining intact without increasing any of the RTID related tax levels. 

Tolling

RTID is considering the potential for tolls on SR 520 Floating Bridge.  Revenue generated from tolls would be in addition to the funding identified above.  Bonded tolling on SR 520 could provide between $450 M and $1,020 M for construction and operations of tolled facilities.

Financial Model Independent Review

An independent review of the RTID financial model and underlying assumptions was conduct in May 2004 by a team of expert analysts from Merrill Lynch, Lehman Brothers, Morgan Stanley, Citigroup, Seattle Northwest Securities, and Hattori and Associates.  (Review Presentation)

The team found the model to be generally complete and acceptable but suggested the following improvements: extend debt from 25- to 30-year terms; raise debt service coverage with state-backed bonds from 1.15 to 1.20; and raise interest rate assumptions for 2005 to 2007 from 5.14% to 5.50%. These improvements are reflected in the Total Funding With State Bonding table updated in June 2004.

How much would the proposed RTID funding package cost me?

Based on the average incomes and car ownership - the taxes and user fees would be approximately $271 - $291 per year per household (excludes tolling).  To make a rough calculation based on your income, see Estimated Average Costs Per Household

Independent review of RTID's Revenue Studies and Forecasts

Independent studies verify RTID revenue accuracy, forecast growth, tax base for transportation projects.

Two independent studies have verified the accuracy of the Regional Transportation Investment District’s original revenue studies showing economic growth and an expanding tax base to fund transportation projects.

The Conway Pedersen study shows King, Pierce and Snohomish county economies are returning to growth and would provide an expanding tax base to fund transportation projects. The study predicts a growing tax base through 2033 that could be used to fund RTID’s recommended package of road and transit projects.

The economic study for King, Pierce and Snohomish counties was conducted by Conway Pedersen Economics. A second study by was conducted by ECONorthwest estimated this year’s value of the tax base for the motor vehicle excise tax in the three counties. It provided a benchmark for Conway Pedersen’s revenue forecasts.  The RTID Executive Board reviewed the study at its March 12 meeting.

• Preliminary Puget Sound Economic and Tax Base Forecast

• Puget Sound Economic and Tax base Forecast, 1970-2033

• March 13, 2004 Press release - "Independent study verify RTID revenue accuracy..."

Authorized Funding Sources

The RTID is authorized by the State to recommend to voters specific types and levels of taxes or user fees.  Among those funding sources, the RTID may consider:

• Sales Tax of 0.1% to 0.5%,

  • includes High Capacity Transportation (HCT) taxes*

• Vehicle License Fee of $1 to $100,

• Motor Vehicle Excise Tax (MVET) of 0.1% to 0.3%, 

• Local Option Gas Tax 0 to 2.8¢ per gallon,

• Tolls on specific roads or bridges

To see how much money each source might provide, please see Funding by Source and Level.  Each funding source has restrictions on what types of transportation project can be funded by the revenue source.

*Sound Transit - state law permits the RTID to submit to the voters a "joint" (or common) ballot measure that would authorize the RTID to impose any remaining HCT taxes that have not already been imposed by the Regional Transit Authority (RTA) (i.e., Sound Transit).  These HCT taxes could be spent on HCT projects such as light rail to SeaTac and/or Northgate. For more information see Memorandum on the RTID Joint Ballot Measure and RTID Joint Ballot Measure Q & A.

Tax Source Use Restrictions

Taxes and user fees have limitations on their usage.  

• ESSSB 6140, which authorizes the RTID, sets limits on what type of projects can be funded by the RTID.  

• Sales Taxes and Vehicle License Fees can fund all the project types allowed by ESSSB 6140; however, RTID is specifically prohibited from using revenues for operations, maintenance, and preservation projects or programs. 

• High Capacity Transportation (HCT) tax revenues can be used solely for the purpose of providing high capacity transportation service (which includes the capital construction costs and supporting services), including light rail, commuter rail, express service and high occupancy vehicle lanes.

• Projects originally submitted to the voters as part of Sound Transit's Phase I projects (e.g., extending light rail to Northgate and SeaTac) have fulfilled the procedural requirements of those statutes.  Projects that have not already gone through the Sound Transit review process, (e.g., extending light rail across Lake Washington), must still go through that review process prior to the election.

• The Motor Vehicle Excise Tax (MVET) can be utilized for transit capital improvements, high occupancy vehicle lanes, and similar programs 

• Tolls can only be collected on new highways or highways that have been reconstructed as part of the investment plan.

• Gas Tax funds are limited to highway uses.