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Exhibit 17. Potential Additional Revenue Generated by Various Revenue Tools (2018$) Transportation Benefit District - Vehicle Licensing Fee 2018-2023 (Years 1-6) s 6,540,000 2024-2027 (Years 7 -10) s 6,510,000 10-YearTotal, 2018-2027 2028-2037 (Years 1-10) (Years 11-20) $ 13,050,000 s 18,570,000 20-YearTotal, 2018-2037 (Years 1-20) $ 31,610,000 Transportation Benefit District - Sales and Use Tax s 4,740,000 $ 3,500,000 $ 8,250,000 s 9,990,000 . $ 18,240~000 Property Tax Levy Lid Lift - County Road Fund ($1.75 per $1000 AV) $ 22,170,000 $ 13,150,000 $ 35,320,000 $ 26,990,000 $ 62,320,000 Sources: Kittitas County Public Works 2018; Kittitas County As se ssor's Office 2018; Washington Department of Licensing 201 8; Washington Department of Revenue 201 8; Wa shington Joint Transportation Committee 2017; BERK Consulting 201 8. Note: These figure s are rounded to the nearest 10,000. Financing Options If the County chooses to instead pursue debt financing, the County can levy additional debt through two main financing tools, Limited Tax General Obligation (LTGO) Bonds and Unlimited Tax General Obligation (UTGO) Bonds. Debt bears additional costs through interest, and any use of bonding capacity for transportation projects reduces the remaining bonding capacity available for other projects. LTGO bonds will impact the General Fund, while UTGO bonds will have an additional tax burden. The loan schedules used in this analysis assume a l .5 percent bond issuance fee, a 4 percent interest rate, and a loan taken over the 20-year period. • Limited Tax General Obligation Bonds (Non-Voted) • LTGO bonds are councilmanic bonds (debt) that do not require voter approval, and they must be repaid from County revenues, since there is no dedicated source of new revenue for the debt service. 0 The County is currently taking out 21 percent of its LTGO debt capacity ($91.6 million) and has a remaining debt capacity of $72. l million. Taking on additional bond debt will affect the County's credit rating, so best practices suggest using less than two-thirds of the debt capacity to maintain credit rating. That means the County's remaining debt capacity based on best practices for maintaining credit rating is $41 .5 million. 0 The County does not have enough LTGO debt capacity to cover the projected 20-year deficit of $91.1 million. Even if the County were to take out the entire deficit in a one-time LTGO bond, the bond would cost the General Fund $136.1 million over the bond's lifecycle, and it would hurt the County's credit rating. • Unlimited Tax General Obligation Bonds (Voted) 0 UTGO bonds are voted bonds that require levying an additional property tax to repay the debt. This impacts property owners. : ~I I May 22, 2018 Kittitas County Public Works I 20-Year TIP Fiscal Sustainability Strategy: Final Report 20