Rail system cost would be within cap

Fri., June 9, 2006

By Amy Cannata amyc@spokesman.com

Building a light rail system between downtown Spokane and Liberty Lake would cost an estimated $381 million over the next eight years.

That’s $265 million in today’s dollars, according to the Spokane Transit Authority’s new estimates, which is within the $300 million cap set by the agency’s board of directors in April.

Where that money would come from hasn’t quite come into focus, however.

Light rail consultant David Evans and Associates laid out Thursday a variety of options to the Light Rail Steering Committee. All scenarios included some form of local taxation, whether it be a sales tax increase, a business tax based on number of employees, local improvement district, higher property taxes, a gas tax, a car rental tax or local vehicle tolls, vehicle license fees or some combination of those sources.

As much as $84 million in federal funding might also be available.

Cities and Spokane County could also be asked to contribute, said John Lackey with David Evans and Associates.

“Typically, with light rail projects we’ve worked on, the cities in the corridor and perhaps the county provide a significant share of the funding,” Lackey said.

Voters may get their first crack at light rail this fall with an advisory vote on continued planning.

Proceeding with preliminary light rail design and beginning real estate acquisition for the project would cost about $12 million, said STA Board Chairman and Liberty Lake City Council member Brian Sayrs.

That money would come from existing sales tax revenue and STA’s reserve account because money already earmarked for light rail development will run out this fall, Sayrs said.

Actual construction would require another vote, perhaps in 2008, because all the funding scenarios include local taxes that must be approved by voters.

Plus, the STA Board has promised it will build a light rail system only if the public wants it.

The Steering Committee agreed Thursday to recommend that the STA Board pursue formation of a separate transportation benefit district to oversee light rail planning and construction.

That group would include elected officials from Spokane County and the three jurisdictions that light rail would travel through – Spokane, Spokane Valley and Liberty Lake. Such a district would have greater debt capacity than STA.

Lackey cautioned the group that waiting too long to build a light rail system could be costly because construction costs are rapidly escalating.

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