OLYMPIA — Sound Transit would be able to issue 75-year general obligation bonds under new legislation introduced by Senate Transportation Committee Chair Marko Liias (D-Edmonds). The bipartisan bill would give Sound Transit an additional financing tool to deliver promised projects to riders and keep up with rising constructions costs due to inflation and tariffs.
“Transit riders can’t afford business as usual anymore. We must give our transit partners as many tools as possible to minimize construction delays, navigate market uncertainty, and deliver promised projects quickly and at the lowest possible cost,” Liias said. “Expanding access to light rail is a game changer for communities, and giving Sound Transit more borrowing flexibility will help get us get light rail lines faster to Everett and other destinations. Let’s build the darn trains!”
Sound Transit CEO Dow Constantine said the bill would give the agency much-needed flexibility to deliver projects to riders.
“Transformational infrastructure investments are delivered most efficiently when supported by innovative financial tools. This legislation gives Sound Transit the ability to issue 75-year bonds, allowing the same flexibility in the private bond market that many other states enjoy for federal transportation financing projects,” Constantine said. “This would allow us to respond appropriately to market conditions, reduce project delays, and most importantly deliver the benefits of an expanded regional transit system to our riders as quickly as possible.”
Dave Somers, Snohomish County executive and chair of the Sound Transit Board of Directors, said the bill would give the agency another financial tool to deliver projects amidst economic challenges.
“As chair of the Sound Transit Board, I want to thank Sen. Liias for his leadership and continued partnership. As the board works through the agency’s long-term affordability challenges, this legislation provides Sound Transit with multiple common-sense options to support project delivery while maintaining strong financial stewardship on behalf of taxpayers and riders,” Somers said.
Though the bill provides more borrowing flexibility, Sound Transit would still need 60% of voters to approve any new debt that exceeds the 1.5% limit. In addition, Sound Transit would be ineligible to receive funds from the state’s Regional Mobility Grant program if it issues any general obligation bonds with a term longer than 40 years.
Source: Sen. Marko Liias’ office
Author: Lynnwood Times Staff
