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FUNDING GAP
<br />Using the projected revenues and expenditures, a baseline picture was generated of the total revenue
<br />availability based on current financial policies for the next 6 and 20 years. This is shown in Exhibit 1 2.
<br />Some of the County's transportation revenue sources are specifically earmarked for capital purposes.
<br />These include federal grants, state grants, and any Road Fund allocations to support those grants (an
<br />average of about 20 percent per grant). As shown in Exhibit 1 2, the transportation program has been
<br />very dependent on federal and state grants. Future revenue projections are based on historical grant
<br />numbers, and it is important to understand that these revenue sources are uncertain and not guaranteed
<br />in the future.
<br />To account for the capital-restricted funds in our analysis, we assume Road Fund allocations to match
<br />grants average 20 percent of grant funds. This estimated minimum match for grants is included under
<br />capital-restricted funds in the exhibit below.
<br />Exhibit 12. Total Projected Transportation Financial Capacity for Operating Expenditures and Capital Projects,
<br />2018 to 2037 (2018$)
<br />2018-2023 2024-2027 10-YearTotal,
<br />2018-2027 2028-2037 20-YearTotal,
<br />2018-2037
<br />(Years 1-6} (Years 7-10) (Years 1-10} (Years 11-20) (Years 1-20)
<br />Total Revenues $ 60,440,000 $ 40,635,000 $ 101,075,000 $ 105,437,000 $ 206,512,000
<br />Capital Only Funds
<br />Federal Grants $ 11,192,000 $ 7,462,000 $ 18,654,000 $ 18,654,000 $ 37,308,000
<br />State Grants $ 7,983,000 $ 5,322,000 $ 13,305,000 $ 13,304,000 $ 26,609,000
<br />Estimated Minimum Match for Grants (20%) $ 3,835,000 $ 2,556,800 $ 6,391,800 $ 6,391,600 $ 12,783,400
<br />Total Restricted to Capital $ 23,010,000 $ 15,340,800 $ 38,350,800 $ 38,349,600 $ 76 700,400
<br />Total Available for Operating Expenditures $ 37,430,000 $ 25,294,200 $ 62,724,200 $ 67,087,400 ! $ 129_,811~600
<br />Total Projected Operating Expenditures $ 48,636,000 $ 33,372,000 $ 82,008,000 $ 88,456,000 $ 170.,464,000
<br />Projected Operating Expenditures Surplus $ (11,206,000) $ (8,on,soo1 $ (19,283,800) $ (21,368,600) $ (40,652,400}
<br />or Deficit
<br />Total Available for Capital $ 23,010,000 $ 15,340,800 $ 38,350,800 $ 38,349,600 1 s 76,700,400
<br />Sources: Kittitas County Public Work s 20 l 8; BERK Consulting 20 l 8.
<br />Not e: These figur es are rounded to th e nearest 1,000.
<br />After accounting for capital-restricted funds, Exhibit 12 shows that in the 6-year period, approximately
<br />$23 million in revenue is capital-restricted. This means that only $37 million of the $49 million needed for
<br />operating expenditures is available. This is a starting deficit of $11 million in the 6-year period for
<br />operating activities, which is an additional funding need of around $2 million annually.
<br />: ~I I Moy 22, 2018 Kittitas County Public Works I 20-Yeor TIP Fiscal Sustainability Strategy: Fino/ Report 14
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