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Exhibit 17. Potential Additional Revenue Generated by Various Revenue Tools (2018$)
<br />2018-202.3 2024 - 2027 10 -Year Total, 2028.2037 20 -Year Total,
<br />2.018-2027 2018 - 2037
<br />(Years 1- 6) (Years 7 -10) (Years 1-10) (Years 11- 20)
<br />(Years 1-201
<br />Transportation Benefit District -
<br />Vehicle Licensing Fee $ 6,540,000 $ 6,510,000: $ 13,050,000 $ 18,570,000: $ 31,610,000
<br />Transportation Benefit District -
<br />Sales and Use Tax $ 4,740,000 $ 3,500,000 $ 8,250,000 $ 9,990,000 '', $ 18,240,000
<br />Property Tax Levy Lid Lift -
<br />County Road Fund ($1.75 per
<br />$1000AV) $ 22,170,000 $ 13,150,000,$ 35,320,000 $ 26,990,000:$ 62,320,000
<br />Sources: Kittitas County Public Works 2018; Kittitas County Assessor's Office 2018; Washington Department of Licensing
<br />2018; Washington Department of Revenue 2018; Washington Joint Transportation Committee 2017; BERK Consulting 2018
<br />Note: These figures are rounded to the nearest 10,000.
<br />Financing Options
<br />If the County chooses to instead pursue debt financing, the County can levy additional debt through two
<br />main financing tools, Limited Tax General Obligation (LTGO) Bonds and Unlimited Tax General
<br />Obligation (UTGO) Bonds. Debt bears additional costs through interest, and any use of bonding capacity
<br />for transportation projects reduces the remaining bonding capacity available for other projects. LTGO
<br />bonds will impact the General Fund, while UTGO bonds will have an additional tax burden. The loan
<br />schedules used in this analysis assume a 1.5 percent bond issuance fee, a 4 percent interest rate, and a
<br />loan taken over the 20 -year period.
<br />Limited Tax General Obligation Bonds (Non -Voted)
<br />LTGO bonds are councilmanic bonds (debt) that do not require voter approval, and they must
<br />be repaid from County revenues, since there is no dedicated source of new revenue for the debt
<br />service.
<br />The County is currently taking out 21 percent of its LTGO debt capacity ($91.6 million) and has
<br />a remaining debt capacity of $72.1 million. Taking on additional bond debt will affect the
<br />County's credit rating, so best practices suggest using less than two-thirds of the debt capacity to
<br />maintain credit rating. That means the County's remaining debt capacity based on best practices
<br />for maintaining credit rating is $41.5 million.
<br />The County does not have enough LTGO debt capacity to cover the projected 20 -year deficit of
<br />$91.1 million. Even if the County were to take out the entire deficit in a one-time LTGO bond,
<br />the bond would cost the General Fund $136.1 million over the bond's lifecycle, and it would
<br />hurt the County's credit rating.
<br />■ Unlimited Tax General Obligation Bonds (Voted)
<br />UTGO bonds are voted bonds that require levying an additional property tax to repay the
<br />debt. This impacts property owners.
<br />:111 May 22, 2018 Kittitas County Public Works 1 20 -Year TIP Fiscal Sustainabilify Strategy: Final Report 20
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