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Building Owners and Managers Association

Building Owners and Managers Association. Roads & Transit Forum. by. September 26, 2007 . Jim Horn Dick Paylor.

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Building Owners and Managers Association

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  1. Building Owners and Managers Association Roads & Transit Forum by September 26, 2007 Jim Horn Dick Paylor

  2. “Congestion is not a scientific mystery, nor is it an uncontrollable force. Congestion results from poor policy choices and a failure to separate solutions that are effective from those that are not. We need a new approach, and we need it now.” Former U.S. Secretary of Transportation Norman Mineta May 16, 2006 in a speech to the National Retail Federation

  3. City of SeattleDominates Transit Trips

  4. Does light rail make sense on I-90? High Risk - Safety Standpoint (Expert Review Panel) Increases Congestion and Reduces Usage Legal Challenge - “Taking of the Center Roadway” There is a “Better Way” – more service for less money

  5. In Summary Costs too much Does too little Does the wrong things

  6. All-or-Nothing Ballot • The Roads & Transit Package is an All-or Nothing Ballot For Newand Extended Transportation Taxes • Approval of ST2 Includes Extension of ST1 Taxes • New tax Levies: • RTID – +0.1% Sales Tax plus 0.8% MVET • ST2 – Extends the ST1 0.4% Sales Tax and increases it to 0.9% • Total Package Tax – 1.0% Sales Tax plus 0.8% MVET • Tax Sunset Years • RTID – Will Sunset in 2037 after accelerated bond payoff • ST1 & ST2 – Hopeful reduction after 2057 bond payoff • But obligated to cover O&M costs and capital replacement Reserves in perpetuity 7

  7. A 50-year Tax Commitment • The R&T is a 50-year transportation tax commitment -- 90% dedicated to public transit • But even ST admits that ST2 will have an insignificant effect on road congestion reduction • Shifts 0.5% of 16.4 million person trips/day to transit by 2030 • It will be 20 years before most of ST2 rail goes into operation • Road Congestion is the #1 concern for this region – • The RTID is a vastly reduced start on addressing road congestion 8

  8. R&T Tax Revenue Estimates Actual $ in billions * Tax collections end in 2037. ** $157 billion in local tax commitment with one pull of the lever at the polls in Nov 2007 – 90% to be dedicated to public transit, mostly to the 70-mile light rail system overlay of existing express bus routes. • ProgramThru 2027Cum thru 2057% Total • ST1 extended $11.4 $64 41% • ST2 $15.0 $77 49% • RTID $8.0$16* 10% • Total $34.5 $157** 100%

  9. R&T Tax Costs per Household ProgramIn 2009* ST1 $336 ST2 $332 RTID $204 Totals $872 Cum thru 2057 $38,100 (41%) $44,900 (48%) $10,600 (11%) $93,600** * First full year of R&T tax collections ** 50-year cumulative tax collections per household in Actual$ • Sound Transit has published extreme lowball estimates • RTID - $25 + $80 per $10,000 of vehicle value per year (2006$) • ST2 - $125 per year; no reminder of ST1 tax extension (2006$) • Business tax pass-thru to householders ignored plus other omissions • Dividing Tax Revenues by Households yields: 10

  10. Excluded from the RTID • No funding for the Alaskan Way Viaduct Project • No funding for I-5 Improvements • Incomplete funding for SR-509 Extension (SeaTac) • Incomplete funding for SR-167 Ext to Port of Tacoma • No funding for Valley Freeway (SR-167) expansion • No funding for expansion of I-405 north of Bellevue CBD • Incomplete funding for SR-520 Bridge Replacement • No funding for SR-520/SR-202 terminal mess in Redmond • Only Phase 1 funding for US-2 Monroe Bypass and no expansion of US-2 from Monroe eastward 11

  11. RTID Fin Plan Summary Actual $ in millions Total Tax Commitment = $16,100 O&M Costs revert to existing highway tax revenues 2008 thru 2027thru 2037Comment Revenues Local Taxes $8,057 $16,100End of tax collection Bond Proceeds 6,255 0 Principal Repaid Other/Interest 154 250 Total $14,466 $16,350 Total Program Revenue Expenses Capital Projects $9,672 $9,672 Finance Costs 4,313 6,380* *Interest Cost only Admin/Reserves 481 298 Bond reserves released Total $14,466 $16,350 12

  12. What Does ST2 Include? • 50 miles of Light Rail extensions that merely overlay existing downtown Seattle-centric Express Bus Routes • 95% of the ST2 Capital Investment program • Regional Express (REx) Bus System (3%): • 1 transit center and 3 park-ride lots • Bus fleet enhancements and two new bases (transferred from ST1) • 29 of 33 requested REx projects eliminated, including all new routes and facilities in the I-405 corridor called for in the adopted corridor plan • Sounder (2%): • 7 of the 18 proposed ST2 projects (mostly transferred from ST1) ST2 is now 95% Dedicated to Light Rail Extensions 13

  13. ST2 Fin Plan Summary Actual $ in millions $7,240 after 2027 The 50-year Cost Commitment ST Disclosure of Program Cost = $23,560 + $7,240 = $30,800 thru 2057Comment By MacIsaac thruBond retirement $77,000Adds to $64 billion ST1 Extension 4,400 $600m Capital, Balance for O&M 0 Principal repaid by 2057 14,300 15% of Total Cost $95,700 Total Program Revenue $17,500 95% to Light Rail extensions 52,000 With half the COP warning 9,100 17,100 $95,700 2008 thru 2027 Revenues Local Taxes $15,000 Federal Grants 900 Bond Proceeds 7,320 Fares & Other 340 Total $23,560 Expenses Capital Projects$17,500 Op &Admin Costs 2,630 Finance Costs 2,010 Reserves 1,420 Total $23,560 7/28/2007 14

  14. Transit Sales Tax Escalation Total Transit % of S.TaxShare Total Should 20% of all state sales tax be dedicated to Transit? • In 1990 8.2% 0.6% 7% • Local County Transit • In 1997 8.6% 1.0% 12% • Sound Transit Phase 1 Tax Added • In 2007 8.9% 1.3% 15% • MVET Replacement and KC Transit Now • With Prop 1 9.5% 1.9% 20% • Plus 0.5% Sound Transit; Plus 0.1% RTID

  15. Transit Ridership ST Service Area 2030 Average Weekday Trips* 2006 Base2030 w/o ST2** With ST2Change Total Person Trips 10,300,000 14,900,000 14,900,000 Total Transit Trips 278,000 482,000 553,000 +74,000 Transit Mode Share 2.7% 3.2% 3.7% 0.5% Transit “Boardings” 359,000 661,000 814,000 +153,000 Transfer Rate 1.29 1.37 1.47 2.06 * Source: ST Making Connections, Appendix C, June 2007 ** Includes ST1 Regional Transit program. • Sound Transit releases ridership in terms of “Boardings” • But the true measure is completed “trips” from O to D • Trips via Light Rail require 2 or 3 bus and rail Boardings • Below are Sound Transit’s estimates for transit usage 7/28/2007 16

  16. What is Your Plan? The question often posed to light rail opponents • We suggest that this region continue to pursue the Rapid Bus Transit program that it has been pursuing for 30 years • Continue expanding the Transit/HOV lane system on freeway corridors with promised WSDOT management that has brought us to 8th in the nation for transit share • Eliminate the expensive rail transit overlay and dedicate the capital investment savings to cost-effective transit and road capacity enhancement • The following slide illustrates the proposed transit system alternative 7/28/2007 17

  17. Cost-effective Transit Plan <–– This as proposedby Sound Transit for $144 Billion thru 2057to overlay existing Express Bus services Or This to interconnectthe suburban region with a “regional” transitsystem that providesnew transit services forthose not served today for 1/5th the cost? ––> Let us pursue a cost-effective transit addressto our job access needs 7/28/2007 18

  18. In Summary Costs too much Does too little Does the wrong things

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