
Sound Transit CEO Peter Rogoff has suggested the agency is exploring creative financing options for Everett Link that shift some costs outside of agency debt limits. If successful, this would mitigate the risk of project delays as Sound Transit bumps up against statutory limits on debt in the 2030s, and may even accelerate the timetable.
The remarks came in a meeting of the Everett City Council. In response to questions about earlier service to Everett, Rogoff replied:
“Our goal in terms of being able to serve Everett sooner is two-fold. One, to work with the communities as cooperative partners to see if we can’t focus on results and minimize bureaucracy to get a plan to get up here as soon as we can. That’s A. B, if there is a way that we can work out a financial arrangement where we could start incurring costs for this that would be exempt from the debt cap imposed on us, that might provide some opportunities to get up here sooner. We’re trying to be as creative as possible.
We’ve made that commitment to not only Paul Roberts, to Dave Somers, to Dave Earling, who’ve been on this for a long time. I don’t want to say it’s impossible. I’d like to continue with each passing year to see if we can’t drive that schedule closer and closer.”
Sound Transit, like any local government in Washington State, faces a constitutional limitation that non-voted debt not exceed 1.5% of the assessed value of property within its jurisdiction. This constrains the size and timing of capital investments as revenues must accumulate to cover most of the program. At its peak, the financial plan envisions $17.6 billion in debt by 2035, just as Everett Link is scheduled to open in 2036. The debt limit in 2035 is projected at $20.1 billion. There are many risks to that forecast, starting with the inescapable vagaries of a financial forecast two decades into the future. MVET reform alone could erode almost all of Sound Transit’s cushion unless accompanied by offsets. Several billions of anticipated federal grants are uncertain. Community pressures may drive some project costs higher.
We asked Sound Transit to elaborate on the options to spend beyond the debt cap, and Sound Transit spokesperson Kimberly Reason explained: Continue reading “Financial engineering to accelerate Link”












