Briefing on I-976 Board of Directors Meeting 03/26/2020 I-976 - - PowerPoint PPT Presentation

▶
briefing on i 976
SMART_READER_LITE
LIVE PREVIEW

Briefing on I-976 Board of Directors Meeting 03/26/2020 I-976 - - PowerPoint PPT Presentation

Feb 18, 2023 326 likes •417 views

Briefing on I-976 Board of Directors Meeting 03/26/2020 I-976 Application to Sound Transit Repeals statutory authority for MVET and Rental Car Tax Repeal of taxes takes effect after ST retires, refinances, or defeases bonds that are

slide-1
SLIDE 1

Briefing on I-976

Board of Directors Meeting 03/26/2020

slide-2
SLIDE 2

2

I-976 Application to Sound Transit

  • Repeals statutory authority for MVET and Rental Car Tax
  • Repeal of taxes takes effect after ST retires, refinances, or defeases

bonds that are secured by the MVET and Rental Car Tax

  • Reduces MVET authority from .8% to .2% if taxes are not repealed

by April 1, 2020 (would apply only to future expansion plans submitted to voters)

slide-3
SLIDE 3

3

I-976 does not repeal Sound Transit’s MVET tax until bonds are repaid and no longer outstanding

slide-4
SLIDE 4

4

Sound Transit has an obligation to pay for all committed expenses

  • Capital
  • Operating
  • Debt service
  • State of Good Repair
  • Other committed expenditures
slide-5
SLIDE 5

5

  • Northgate Link Extension
  • Hilltop Tacoma Link Extension
  • East Link Extension
  • Lynnwood Link Extension
  • Downtown Redmond Link Extension
  • Federal Way Link Extension
  • Stride Bus Rapid Transit
  • OMFE
  • Sounder, STEX, LRV Fleet Expansion
  • Other

Committed Capital Projects

slide-6
SLIDE 6

6

Bond Defeasance

  • Current Bond outstanding: $2.3 billion
  • Cash needed to defease bonds: $2.9 billion
  • Insufficient funds before or after funding committed expenses.
slide-7
SLIDE 7

7

Sound Transit does not have sufficient financial resources to defease the bonds to which MVET is pledged. We will notify the Board when/and if the agency has sufficient fund to defease the bonds.