1. Presentation to the Washington State Association of County Engineers November 11, 2010 Washington State Association of County Engineers

2. What is the gap between current resources and what is needed to meet goals? What are the priorities for funding? What are the options for funding? 2

3. 3 Mileage% of Total Northeast17,207.943.3% Northwest4,428.711.2% Puget Sound4,969.712.5% Southeast7,468.118.8% Southwest5,644.514.2% Grand Total39,718.9100.0%

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12. 12 3307 county bridges (>20 ft.) 8.2 million square feet of surface area $5.9 billion replacement cost $3.9 million annual maintenance cost $118.4 million annual replacement cost

13. Four counties operate ferries: Pierce Skagit Wahkiakum Whatcom The Wahkiakum & Whatcom ferries are nearly 50 years old and are being considered for replacement. County Ferry System Four Washington counties own and operate ferries as part of their local transportation network. Pierce County RouteSteilacoom to Anderson and Ketron Island. FerriesM/V Christine Anderson (1994) M/V Steilacoom II (2006) Value$39,730,600 Skagit County RouteAnacortes to Guemes Island FerryM/V Guemes (1979) Value$13,877,394 Wahkiakum County RoutePuget Island to Westport, OR FerryM/V Wahkiakum (1962) Value$5,590,000 Whatcom County RouteGooseberry Point to Lummi Island FerryM/V Whatcom Chief (1962) Value$19,868,000 Ferry data from 2008 CRAB ferry report (data from 2007) 13

14. Annual Replacement Need CountyTotal Pierce $ 1,589,224 Skagit $ 555,096 Wahkiakum $ 223,600 Whatcom $ 794,720 Grand Total $ 3,162,640 Ferry Annual Oper. & Maint. CountyTotal Pierce $ 3,417,576 Skagit $ 1,639,558 Wahkiakum $ 698,392 Whatcom $ 2,144,707 Grand Total $ 7,900,233 Ferry data from 2008 CRAB ferry report (data from 2007) Annual operation maintenance is based on historical costs and values. Actual costs for replacement of ferry infrastructure can only be determined after thorough evaluation. 14

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16. Removal of fish passage barriers is a significant environmental cost liability to counties. Recent projects by counties have project costs ranging from under $100,000 to over $500,000. 16

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18. The majority of county road revenue comes from local property taxes and state shared gas tax. 18

19. Counties spent nearly $900 million for road maintenance and construction (preservation) in 2008. Road maintenance expenditures declined by 2% from 2007 to 2008. 19

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22. 22 Levy rates dropped on average from $1.852 to $1.316 per $1,000 A.V. Requires voter approval

23. 23 Relatively little income potential Dependent on development activity Can only be used for capacity projects

24. 24 Once established, district develops plan Allows district to include maintenance and preservation of transportation facilities

25. 25 Funding options include Sales and Use Tax (up to 0.2 cents) Vehicle fee (up to $100, $20 councilmanic Commercial building fees Tolls $54 million potential statewide for counties at $20 councilmanic license fee

26. 26 Up to 10% of state motor vehicle tax – 3.75 cents maximum Requires voter approval Distribution weighted 1.5 to 1.0 for county and city population $58 million potential revenue for counties

27. 27 Voter approval not required Allows up to 75 cents/$1,000 except for King County limited to 7.5 cents/$1,000

28. 28 Shared MVFT by 10-30-30-30 formula 4.92 cents - $138 million $31 million per one cent of MVFT County Arterial Preservation Program 0.45 cents - $14 million per year Allocated by formula

29. 29 Rural Arterial Program 0.58 cents - $18 million per year competitively distributed for projects Transportation Improvement Board 3.04 cents - $200 million per biennium competitively distributed for projects county grants average $20 million per year

30. 30 Need is approximately $400 million per year Equivalent to current road tax levy Equivalent to 13 cents of MVFT How much should state be expected to help out? Prior to 2003 state shared 48% of MVFT to counties and cities Now city/county share is approx. 32%

31. 31 Recommendations: Add 2 cents ($62 million) to 4.92 cents allocation Add 1 cent ($31million) to.45 cent for CAPP Add 2 cents to.58 cent for RAP Add urban arterials and some access roads (truck routes, high volume) Add 1 cent for new bridge replacement program and fish passage barriers Total = $186 million per year.

32. Gary Rowe, P.E., Managing Director Washington State Association of County Engineers (360) 753-1886 growe@wacounties.org Washington State Association of County Engineers 32