Form revised October 26, 2007

FISCAL NOTE FOR CAPITAL PROJECTS ONLY

Department:	Contact Person/Phone:	DOF Analyst/Phone:
Seattle Department of Transportation	Jana Hopper 684-0344	Stephen Barham  733-9084

Legislation Title:

AN ORDINANCE relating to the financing of the South Lake Union Streetcar Project; authorizing the loan of funds from the City’s Consolidated (Residual) Cash Pool, or its participating funds, to the Transportation Master Fund; and providing for the repayment thereof.

Summary and background of the Legislation:

The City Council authorized the Executive to proceed with the construction of the South Lake Union Streetcar while simultaneously working to close the project’s funding gap.  The Council approved the use of $2 million from the South Lake Union Proceeds Subaccount and future proceeds from the sale of surplus property adjacent to and air rights above the South Lake Union Streetcar Maintenance Facility and Yard at 318 Fairview Avenue North toward the total funding gap.

Additionally, in the short-term, the project is awaiting $3.0 million in an FTA grant that has been approved and is currently pending appropriation, and $1.15 million from the federal budget pending outcome of the 2008 Budget Conference Report.

This legislation authorizes an interfund loan, not to exceed $5.945 million in principal and interest, to be utilized to fund South Lake Union Streetcar construction costs and related debt service costs.  The legislation authorizes the Executive to effectuate the loan by transferring cash from one or more of the funds participating in the City’s Consolidated (Residual) Cash Pool to the Transportation Master Fund, or by carrying the Transportation Master Fund (TMF) in a negative cash position in an amount not to exceed $5.945 million beyond the negative balance authorized by Ordinance 120016, until no later than December 31, 2009.  The Seattle Department of Transportation (SDOT), which administers the TMF, expects to establish a new subfund of the Transportation Master Fund in order to receive and track the loan.

By December 31, 2009, the City will repay the interfund loan with up to $2 million from the South Lake Union Property Proceeds Subaccount and proceeds from the sale of surplus property adjacent to and air rights above the South Lake Union Streetcar Maintenance Facility and Yard at 318 Fairview Avenue North.  In the event these proceeds do not fully repay the Interfund Loan, up to $1.5 million in proceeds from Denny/South Lake Union transportation mitigation funds will be used, or this interfund loan will be extended.

A supplemental appropriation of $3.735 million for the South Lake Union Streetcar project is proposed in the 4^th Quarter Supplemental ordinance, adjusting the total project appropriation to $52.13 million.

Project Name:	Project I.D.	Project Location:	Start Date:	End Date
South Lake Union Streetcar	TC366260	Westlake Ave. / 5^th Ave.	Q1 2003	Q1 2008

· Please check any of the following that apply:

____ This legislation creates, funds, or anticipates a new CIP Project. (Please note whether the current CIP is being amended through this ordinance, or provide the Ordinance or Council Bill number of the separate legislation that has amended/is amending the CIP.)

____ This legislation does not have any financial implications. (Stop here and delete the remainder of this document prior to saving and printing.)

_X_ This legislation has financial implications. (Please complete all relevant sections that follow.) 

Appropriations:  This table should reflect appropriations that are a direct result of this legislation.  In the event that the projects associated with this ordinance have appropriations that were, or will be, received because of previous or future legislation or budget actions, please provide details in the Notes section below.  Finally, if this legislation does not directly change an appropriation, but results in budget authority being moved within a Budget Control Level, or to a Budget Control Level (up to 10%), please explain in the Notes section below.

Fund Name and Number	Department	Budget Control Level*	2007 Appropriation	2008 Anticipated Appropriation
N/A
TOTAL

*See budget book to obtain the appropriate Budget Control Level for your department.

Notes:  An additional appropriation of $3.735 million from the Transportation Operating Fund for the South Lake Union Streetcar project is included in the 4^th Quarter 2007 Supplemental Budget proposed legislation.

Spending Plan and Future Appropriations for Capital Projects:  Please list the timing of anticipated appropriation authority requests and expected spending plan.  In addition, please identify your cost estimate methodology including inflation assumptions, the projected costs of meeting applicable LEED standards, and the percent for art and design as appropriate.

Spending Plan and Budget	2007	2008	2009	2010	2011	2012	Total
Spending Plan
Current Year Appropriation
Future Appropriations

Notes:

Funding source: Identify funding sources including revenue generated from the project and the expected level of funding from each source.

Funding Source (Fund Name and Number, if applicable)	2007	2008	2009	2010	2011	2012	Total
Interfund Loan	$5,945,000
TOTAL

Notes:  By December 31, 2009, the City (via the TMF) will repay the interfund loan with up to $2 million from the South Lake Union Property Proceeds Subaccount and proceeds from the sale of surplus property adjacent to and air rights above the South Lake Union Streetcar Maintenance Facility and Yard at 318 Fairview Avenue North.  In the event these proceeds do not fully repay the Interfund Loan, up to $1.5 million in proceeds from Denny/South Lake Union transportation mitigation funds will be used, or this interfund loan will be extended.  The $5.945 million includes $5.625 million in principal and an estimated $320,000 in interest costs.

Bond Financing Required: If the project or program requires financing, please list type of financing, amount, interest rate, term and annual debt service or payment amount.  Please include issuance costs of 3% in listed amount.

Type	Amount	Assumed Interest Rate	Term	Timing	Expected Annual Debt Service/Payment
N/A
TOTAL

Notes:  $2 million will be included in the 2008 Limited Tax General Obligation bond issuance and deposited in the South Lake Union Property Proceeds Subaccount of the Cumulative Reserve Subfund, under separate Council action approving the 2008 Proposed Budget.

Uses and Sources for Operation and Maintenance Costs for the Project: Estimate cost of one-time startup, operating and maintaining the project over a six year period and identify each fund source available.  Estimate the annual savings of implementing the LEED Silver standard.  Identify key assumptions such as staffing required, assumed utility usage and rates and other potential drivers of the facility’s cost.

O&M	2007	2008	2009	2010	2011	2012	Total
Uses
Start Up
On-going
Sources (itemize)

Notes: 

Periodic Major Maintenance costs for the project: Estimate capital cost of performing periodic maintenance over life of facility.  Please identify major work items, frequency.

Major Maintenance Item	Frequency	Cost	Likely Funding Source
N/A
TOTAL

Funding sources for replacement of project:  Identify possible and/or recommended method of financing the project replacement costs.

N/A

Total Regular Positions Created, Modified, Or Abrogated Through This Legislation, Including FTE Impact:  This table should only reflect the actual number of positions created by this legislation  In the event that positions have been, or will be, created as a result of previous or future legislation or budget actions, please provide details in the Notes section below the table.

Position Title and Department*	Position Number for Existing Positions	Fund Name and Number	Part-Time/ Full Time	2007 Positions	2007 FTE	2008 Positions**	2008 FTE**
N/A
TOTAL

*   List each position separately

** 2008 positions and FTE are total 2008 position changes resulting from this legislation, not incremental changes.  Therefore, under 2008, please be sure to include any continuing positions from 2007.

Notes:

· Do positions sunset in the future?  (If yes, identify sunset date):

N/A

· What is the financial cost of not implementing the legislation: (Estimate the costs to the City of not implementing the legislation, including estimated costs to maintain or expand an existing facility or the cost avoidance due to replacement of an existing facility, potential conflicts with regulatory requirements, or other potential costs if the legislation is not implemented):

Without this legislation, SDOT will not be in compliance with fund balancing requirements.

· What are the possible alternatives to the legislation that could achieve the same or similar objectives (Include any potential alternatives to the proposed legislation, including using an existing facility to fulfill the uses envisioned by the proposed project, adding components to or subtracting components from the total proposed project, contracting with an outside organization to provide the services the proposed project would fill, or other alternatives):

There are currently no other alternatives to achieving the same or similar objective.

· Is the legislation subject to public hearing requirements: (If yes, what public hearings have been held to date, and/or what plans are in place to hold a public hearing(s) in the future?)

No.

· Other Issues (including long-term implications of the legislation):

Please list attachments to the fiscal note below: