4.3. SR 04-19-1999 - Laserfiche WebLink

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One-half of the $70 million cost of developing the initial segment was financed by the Dallas Area Rapid Transit (DART) regional sales tax. As an existing transit service provider, DART qualified for Federal Section 9 formula grants applicable to system expansion and development. Other local funding sources included municipal contributions and railroad contributions associated with making the line suitable for freight service.7 . Seattle Sounder The Seattle Sounder commuter rail system is planned to serve 14 stations along 81 miles of track between Everett and Lakewood, Washington, via Seattle and Tacoma by 2001. The Sounder will share the tracks with BNSF freight trains and Amtrak passenger trains. The Seattle to Tacoma segment is planned to open by the end of 1999. The Seattle Sounder is being developed by Sound Transit, the Central Puget Sound Regional Transit Authority. The capital expenditures budgeted for the Seattle to Tacoma commuter rail is $270 million. Sound Transit has received federal Section 5309 "New Start" earmarked discretionary funds to fund both commuter rail and light rail development. Sound Transit also collects a 0.4% Retail Sates and Use Tax and a 0.3% Motor Vehicle Excise Tax in its service area. This revenue stream is used to support bonds funding 40% of its 1999 capital improvement program.8 SPECIFIC CAPITAL FUNDING AL TERNA TIVES FOR NORTHST AR COMMUTER RAIL SYSTEM . Based on the experience of the peer group commuter rail systems discussed above, this section describes some federal, state, and local capital funding sources that may be available for development of commuter rail service in the Northstar Corridor. Federal Funding Over the course of the ISTEA years, federal funding for transit continued to increase. Likewise, under the TEA-21 legislation, federal funding for transit programs, including commuter rail, has been substantially increased. TEA-21 does provide a higher level of funding for urban rail transit initiatives than predecessor legislation, however substantial nationwide competition for "New Start" funds and existing commitments will result in federal assistance in the area of 40% to 60%, well below the statutory cap of 80%. The Northstar Corridor commuter rail system will be focusing on receiving a 50% share for federal funding participation. It should be noted that none of the peer group systems derived more than 25% of their initial capital from federal sources. State of Minnesota Funding The recent Twin Cities' Metropolitan Commuter Rail Study conducted by the Minnesota Department of Transportation suggests that the State of Minnesota cover the majority of the . initial capital requirements for commuter rail systems under consideration in the state, Northstar Commuter Rail Feasibility Study March 23, 1999 9-4 Financial Analysis