Sound Transit misleading voters, again (update)

There have been some questions about the quote from Sound Transit on whether they really said they would roll back ST1 taxes if an ST2 failed. So here is a document that includes the quote....its the last paragraph and you may need to click on the image to zoom in.

Interestingly, Sound Transit used virtually the same taxpayer protection clause with Prop 1...saying that if an ST3 ever failed, they would roll back ST2 taxes. Now we know how little they meant it.

   

Comments

[Todd]

Aaron Reardon is going to try to make moves...we should have seen this coming. ST needs to be completely revamped....need more practical solutions (no light rail)

[Brotellus]

Michael:

What you have there are copies of pages of the “Sound Move” part of the local law voters approved in 1996.

That quote about the required tax rollback is actually a summary of some very specific bond payoff and tax rollback terms that are in a different part of the local law voters approved (called Appendix B of Sound Move).

Try to get a copy of Appendix B of Sound Move. That is the part of ST’s authorizing ordinance that has strictly limited ST’s taxing and spending rights since voters approved the measure in 1996.

Here is what Appendix B of Sound Move says about what ST MUST do now that the voters have failed to approve a future phase capital program:

XXXXXXXXXXXX

Should voter approval for a future phase capital program not be forthcoming, the RTA Board will initiate two steps to roll back the rate of sales tax collected by the RTA.

a. First, the RTA will first [sic] initiate an accelerated pay off schedule for any outstanding bonds. Second, the RTA will implement a tax rollback to a level necessary to pay the accelerated schedule for debt service on outstanding bonds, system operations and maintenance, fare integration, capital replacement, and agency cost.

b. Once all debt is retired, the RTA will implement a tax rollback to a level necessary to pay for system operations and maintenance, fare integration, capital replacement and agency administration.

XXXXXXXXXXXX

So Michael – what exactly are these comments you received to the effect that ST may not be obligated to roll back the taxes, pay off the debt on an accelerated basis, etc.?

Those comments are not posted here (that I can see), and I’d very much like to see what misinformation is being supplied to you on that particular issue. Thanks.

By the way, about this "Interestingly, Sound Transit used virtually the same taxpayer protection clause with Prop 1" - that is not quite accurate. If you look at what the Prop. 1 ordinance did (Res. R2007-15), it would have amended the Appendix B language and removed the accelerated bond payoff and tax rollback terms copied above. Had voters approved Prop. 1, the terms quoted above would have been amended so that if bonds were outstanding that taxes were pledged to, ST would not have needed to pay them off. Again, that is what the Prop. I amendments to the ST1 "Sound Move App. B" part of the local law would have done, but it failed. So the language quoted above about accelerating the outstanding debt payoff and rolling back the tax rate remains part of the controlling law now.