A Message from Rob Karlinsey, City of Gig Harbor City Administrator
Who would have thought King County would be the cause of higher-than-needed tolls on the Narrows Bridge? Whether it was in your wildest dreams or not, upcoming King County transportation projects may soon have an adverse, albeit indirect, impact on our Narrows Bridge tolls and therefore the Gig Harbor economy. How so?
Tolls for King County projects such as the 520 Bridge and Alaskan Way are on the horizon, and the State Treasurer wants to position the State in order to obtain the lowest interest rates it can get on the bonds for those King County projects. That's where we (Gig Harbor residents) come in, whether we like or or not. To put the King County projects in the best light for bond rating agencies and future underwriters, the State Treasurer wants to show that the State has a recent history of healthy financial reserves (aka savings accounts) for toll-financed projects. Because there aren't a lot of toll bridges in the State, the Narrows Bridge is the only poster child that can be held as a shining example of robust tolls and resulting large debt fund reserves.
But there's a gaping hole in this logic. Unlike the upcoming toll projects in King County, the Narrows Bridge was financed under a different debt agreement that is "triple backed" by the State and doesn't require a certain amount of annual revenue as a percentage of annual debt payments. Future King County toll projects like the 520 bridge on the other hand, will probably require revenue to debt payment ratios. Even though some officials at the State know they are comparing apples with oranges, they still want to show bond raters that the State has the political will to impose higher tolls to ensure greater reserves and thereby garner better interest rates for the King County toll payers. We're not King County -we struck our own, separate deal with the State on the Narrows Bridge years ago. (Side note: The deal we struck with the State required tolls to pay for the entire cost of the Narrows Bridge; toll-funded projects in King County will be heavily subsidized by other State funds.)
Especially in this economy, we can't afford to let King County be the cause of higher-than-needed tolls in Pierce County. The Narrows Bridge citizen advisory committee (CAC) has carefully studied this issue and is recommending a financially sound toll rate adjustment that is sufficient for the type of bond and leaves an adequate cushion. Being required to pay higher-than-needed tolls to build a higher-than-needed reserve cushion is unfair and will hurt our local economy.
Many would-be shoppers and visitors already see the Narrows Bridge as a psychological impediment. We should be willing to pay our fair share, but we can't let the State add another economic impediment by imposing tolls that are higher than necessary - Gig Harbor has a relatively small and more vulnerable economy that can't afford to take this kind of hit. Our local state legislators (Senator Kilmer and Representatives Seaquist and Angel) agree and have been working aggressively on our behalf.
If you also agree, let your voice be heard. The State Transportation Commission's preliminary recommendation to increase tolls will be sent back to the CAC in the near future, and the Transportation Commission's final recommendation to the State Legislature will be voted on soon thereafter. Send letters to the State Transportation Commission (PO Box 47308, Olympia WA 98504-7308) and attend and speak at their meetings. If you want to know when the meetings will take place, contact one of our state legislators or contact me directly at karlinseyr@cityofgigharbor.net
Thanks for posting this. I believe most people in Gig Harbor would do something about this if they were aware of it.
ReplyDeleteThe state should push the "good-to-go" and eliminate the need for workers as it is I often see many lanes open and unused. The tolls are some of the highest in the country for a new bridge and should not be raised.
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