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closeCommittee continues push toward 2010 toll rate structure
Chair: No one on committee wants to raise current rate
Nate Hulings
of the Gateway
An appointed group of citizens given the task to make recommendations regarding the toll on the new Narrows Bridge met last Thursday at the Gig Harbor Civic Center.
The Tacoma Narrows Bridge Citizen Advisory Committee discussed toll-rate scenarios and received an update on $5.28 million given to the project by the state Legislature for operational spending. Committee members consist of citizens who live near the bridge, and they’re appointed by Gov. Chris Gregoire.
The committee’s final recommendation will go to the Washington State Transportation Commission, which can either sustain or amend the toll rates effective July 1, 2010.
Alan Weaver, CAC chair, started the meeting with a clarification and a strong statement.
“We are not setting the tolls. We only give recommendations,” Weaver said. “No one (the committee members) here wants to raise tolls. You can get that out of your mind.”
Weaver said bonds were sold with an increase in tolls in mind.
State Department of Transportation officials presented nine scenarios that outlined how both maintaining and raising toll rates would affect the ending balance, debt service reserve and debt service coverage.
All nine scenarios would remain in the black until 2012. By 2015, four of them would dip into the red by at least $5 million.
If toll rates remain the same — $2.75 for electronic tolls and $4 for cash crossings — the ending balance and debt service reserve would be in the red by 2013.
Forecast revenues have increased for 2011 ending balances from $415,000 to $2.39 million, said Jeff Caldwell, WSDOT assistant director of financial planning.
Caroline Belleci, the committee vice chair, had concerns over the new projections.
“I think we’re being overly optimistic on our traffic and revenue projections,” she said.
Caldwell responded that previous forecasts overestimated the recession’s impact on traffic counts and that the new forecasts reflect that change.
A $5.28 million expense also was discussed in detail because of concerns regarding why and how it should be paid back. In its 2007 supplemental budget, WSDOT Toll Division Director Craig Stone said the state Legislature earmarked the funds out of the gas tax for the operational costs of the new Narrows Bridge.
The 2009 Legislature asked that it be repaid by June 30, 2011.
In past meetings, commissioners had concerns over whether or not that money was spent on the construction of the bridge — capital that state law dictates cannot be paid with toll funds.
One committee member questioned if the $5.28 million could be repaid in bond money.
WSDOT officials presented the commission with a list of where and how the millions were spent. Those records show that all of the funds were spent in 2006 and ’07, before the bridge opened, for non-construction purposes.
Stone said there is no debate whether or not the money must be paid back.
“The Legislature gave us funding,” he said. “They want it repaid.”
The committee recommended WSDOT obtain written clarification from the Attorney General’s Office on exactly how the money should be repaid.
WSDOT’s assertions were questioned by Randy Boss of Gig Harbor. Boss argued that some of the costs were capital expenses, which, by law, cannot be funded through tolls. They must be bonded, he said.
Law states toll charges may only be used to pay for “required costs that contribute directly to the financing, operation, maintenance, management, and necessary repairs of the tolled facility.”
WSDOT maintains the $5.28 million was part of the setup process and none went to the actual construction of the bridge.
The next CAC meeting is scheduled for 5:30 to 7:30 p.m. Dec. 1 at the Gig Harbor Civic Center, 3510 Grandview St.