Resolution No.

R2020-27
Proposed 2021 Budget

Meeting: Date: Type of action: Staff contact:

Finance and Audit Committee 12/17/2020 Recommend to Board Tracy Butler, Chief Financial
Board 12/17/2020 Final action Officer
Ryan Fisher, Director of FP&A
and Budget

Proposed action
Adopts an annual budget for the period from January 1 through December 31, 2021 and adopts the 2021
Transit Improvement Plan (TIP).

Key features summary

• The Proposed 2021 Budget (including the revision in Attachment B) requests funding
authorization of $3.1 billion. This request is comprised of:
o $380.6 million for Transit Operations;
o $2.5 billion for Projects; and
o $207.6 million for Other (including debt service).
• The Proposed 2021 TIP totals $21.5 billion in authorized project allocations.
• The Proposed 2021 Budget would be funded by an estimated $3.0 billion in revenues and other
financing sources and an estimated $129.0 million in unrestricted cash.
• The Proposed 2021 Budget and Proposed 2021 TIP, with the revision, are fully affordable within
the agency’s current financial projections.

Background
The Sound Transit Board adopts the Sound Transit annual budget, which contains the agency’s budget
for revenue and financing, administrative expenses, transit operating expenses, projects, and debt
service. The Sound Transit Board adopts the TIP, a cumulative total of authorized project allocations for
all active projects. Sound Transit’s annual budget and TIP are organized by three primary program
areas: Transit Operating Budget, Project Budgets, and Other Budgets.
The resolution approves the following revenues and expenditures for 2021:
Revenues – $3.0 billion of estimated revenues and other financing sources includes:
• $1,298.9 million from Retail Sales and Use Tax
• $333.3 million from Motor Vehicle Excise and Rental Car Taxes
• $161.0 million from Property Tax
• $376.6 million from federal grants
• $5.6 million from local and state contributions
• $54.2 million from passenger fare revenues
• $14.6 million in interest income
• $12.5 million in miscellaneous revenues
• $700.0 million in TIFIA loan proceeds
Transit Operating Budget – $380.6 million includes:
• $138.5 million for ST Express
• $167.9 million for Link Light Rail
• $67.7 million for Sounder Commuter Rail
• $6.5 million for Tacoma Link
Project Budgets – $2.5 billion for the delivery of projects:
• System Expansion Projects – $2.3 billion which includes:
o $1,972.7 million for Link
o $95.8 million for Sounder
o $18.4 million for Regional Express
o $174.5 million for Stride
o $47.4 million for Other ($44.7 million Proposed 2021 Budget plus $2.7 million budget
revision)
• Non-System Expansion Projects – $201.0 million which includes:
o $35.6 million for Enhancement Projects
o $46.1 million for State of Good Repair Projects
o $119.4 million for Administrative Projects
• $(12.3) million in non-system expansion projects charged to Transit Operating
Other Budget – $207.6 million includes:
• $161.0 million for Debt Service
• $30.6 million for Tax Collection & Fees
• $11.0 million for Operating Contingency
• $5.0 million for Contributions to Other Governments
Reserves – The resolution also provides for the agency to reserve funds for the following purposes:
• Operations & Maintenance Reserve: balance is projected to be $91.2 million at the end of 2020.
A contribution of $2.2 million is budgeted for 2021.
• Emergency/Loss Reserve: balance is projected to be $36.2 million at the end of 2020. A
contribution of $5.5 million is budgeted for 2021.
• Regional Affordable Housing Revolving Loan Fund: balance is projected to be $8.1 million at the
end of 2020. A contribution of $4.0 million is budgeted for 2021.
• Capital Replacement Reserve: $300 million; no contribution is budgeted for 2021.
The resolution also authorizes:
• The revision approved by the Executive Committee, and those adopted by the Board as part of this
action, shown in Attachment B.
• Changes to the authorized project allocation for existing projects as well as establishment of new
projects, with an authorized project allocation net increase of $189.4 million (Attachment C).
• Affirms the Board Administrator authority to file any administrative forms necessary for the collection
of Sound Transit’s property tax, as authorized by Resolution No. R2019-30. Any property tax
estimates required for property tax collection may not exceed the previous year’s collections plus
additional revenue arising from new assessments for new construction, property improvements,
value increases due to the construction of new renewable electric facilities, and new state property
assessments, unless expressly authorized by the Board.

Resolution No. R2020-27 Page 2 of 3

Staff Report
Fiscal information
The Proposed 2021 Budget and Proposed 2021 TIP are fully affordable within the agency’s current
financial projections.
With the revision in Attachment B, which increases the 2021 funding authorization request by
$2,700,000, the 2021 funding authorization request totals $3,085,749,944 in total expenses and outlays.

Disadvantaged and small business participation

Participation by small businesses and disadvantaged business enterprises (DBEs)
Not applicable to this action.

Public involvement
The Sound Transit Board reviewed the Proposed 2021 Budget and Proposed 2021 Transit Improvement
Plan at public meetings that took place in October and November 2020 and reviewed revisions to both in
December. On November 12, 2020, a public hearing was held in order to provide an opportunity for
testimony from interested members of the public.

Time constraints
A one-month delay would postpone adoption of the Proposed 2021 Budget and Proposed 2021 Transit
Improvement Plan into the 2021 fiscal year and the agency would have no spending authority beginning
January 1, 2021. Budget adoption is required prior to the commencement of the fiscal year to provide
authorization to expend funds.

Prior Board/Committee actions

Resolution No. R2020-24: Adopted a Budget Policy and superseding Resolution No. R2018-23.
Resolution No. R2018-44: Adopted a grant benefit allocation policy for subarea reporting purposes,
granting the agency the flexibility to allocate certain federal grant reimbursements as deemed to be in
the best interest of system instead of allocating the reimbursements directly to recipient subareas.
Resolution No. R2016-16: Adopted the Sound Transit 3 Regional Transit System Plan.
Resolution No. R72-1: Superseded Resolution 72, and amended the financial policies to include a
strategic property acquisition program as an enumerated purpose of the Regional Fund.

Environmental review – KH 12/11/20

Legal review – MT 12/11/2020

Resolution No. R2020-27 Page 3 of 3

Staff Report
Resolution No. R2020-27
A RESOLUTION of the Board of the of the Board of the Central Puget Sound Regional Transit Authority
adopting an annual budget for the period from January 1 through December 31, 2021, and adopting the
2021 Transit Improvement Plan.

WHEREAS, the Central Puget Sound Regional Transit Authority, hereinafter referred to as
Sound Transit, has been created for the Pierce, King, and Snohomish Counties region by action of their
respective county councils pursuant to RCW 81.112.030; and

WHEREAS, Sound Transit is authorized to plan, construct, and operate a high-capacity system
of transportation infrastructure and services to meet regional public transportation needs in the central
Puget Sound region; and
WHEREAS, in general elections held within the Sound Transit District on November 5, 1996,
November 4, 2008, and November 8, 2016, voters approved local funding to implement a regional
high-capacity transportation system for the central Puget Sound region; and
WHEREAS, Sound Transit is successfully building and operating the first, second and third
phases of the regional transit system plan that were approved by voters in 1996, 2008 and 2016; and
WHEREAS, Sound Transit is meeting a high standard of public accountability through effective
monthly progress reports and quarterly financial reporting; and
WHEREAS, the Sound Transit Board adopted financial policies to govern the financing and
implementation of the regional transit system and to specify budgetary guidelines for providing
subarea equity in accomplishing the same; and
WHEREAS, permitting the designation of reimbursements from Federal Transit Adminitration’s
(FTA) Capital Investment Grant program and FTA Formula funding grants not necessary to complete a
subarea’s projects as system-wide grant funds available to complete the voter-approved system plans
is consistent with the financial policies adopted as part of the voter-approved plans and could (1)
allow the Board to roll back taxes at the earliest possible date, and (2) permit all projects, including rail
segments connecting the subareas, to be completed on schedule based on current financial
projections. To the extent the funds legally available to a subarea are sufficient to complete the
subarea projects as scheduled, reimbursements from those FTA grants not necessary to meet the
subarea’s project’s baseline cost budget as set by the Board, can be designated a system-wide grant
fund so long as the designation does not violate the grant requirements; and
WHEREAS, the chief executive officer submitted a Proposed 2021 Budget and Proposed 2021
Transit Improvement Plan (TIP) for Board consideration; and
WHEREAS, the Proposed 2021 Budget and Proposed 2021 TIP are consistent with and
affordable under Sound Transit Financial Policies as adopted by Resolution No. R2016-16 and comply
with the Budget Policies as adopted by Resolution No. R2020-24; and
WHEREAS, in 2018 the Sound Transit Board designated the Rider Experience and Operations
Committee, Executive Committee, System Expansion Committee, and the Finance and Audit
Committee as permanent committees with specific responsibilities, including reviewing proposed annual
budgets, and authorized project allocations to date included in the TIP and providing recommendations
to the Board; and
 WHEREAS a public hearing was held on November 12, 2020, to take public testimony on the
Proposed 2021 Budget, TIP, and Property Tax Levy; and
WHEREAS, at its December 3, 2020, meeting, the Rider Experience and Operations Committee
approved Motion No. M2020-70 recommending the Proposed 2021 Budget and TIP for Enhancement
projects, State of Good Repair projects, and Administrative projects (annual and authorized project
allocations to date) and the Proposed 2021 Transit Operating Budget to the Finance and Audit
Committee; and
WHEREAS, at its December 10, 2020, meeting, the Executive Committee approved Motion No.
M2020-73 recommending the Proposed 2021 Budget and TIP for System Expansion – Other projects
(annual and authorized project allocations to date) including a revision to the Finance and Audit
Committee; and
WHEREAS, at its December 10, 2020, meeting, the System Expansion Committee approved
Motion No. M2020-76 recommending the Proposed 2021 Budget and TIP for System Expansion
projects, excluding System Expansion – Other projects (annual and authorized project allocations to
date) to the Finance and Audit Committee; and
WHEREAS, a two-thirds affirmative vote of the entire membership of the Sound Transit Board is
required to adopt the Proposed 2021 Budget and Proposed 2021 TIP.
NOW, THEREFORE, BE IT RESOLVED by the Board of the Central Puget Sound Regional
Transit Authority that:
Section 1a – Revenues and Other Financing Sources. The Proposed 2021 Budget projects the
collection of $2,956,715,658 in total revenues and financing sources including $1,298,931,802 for Sales
and Use Tax, $333,277,691 for Motor Vehicle Excise Tax and Rental Car Tax, $161,000,000 for
Property Tax, $376,610,245 for federal grants, $5,552,779 for local and state contributions,
$54,185,237 for passenger fare revenues, $14,611,709 for interest income, $12,546,195 for
miscellaneous revenues, and $700,000,000 in TIFIA loan proceeds.
Section 1b – Transit Operating Budget. Sound Transit is authorized to incur $380,607,674 in transit
operating expenses.
• $138,496,468 for ST Express bus expenses;
• $167,868,499 for Link light rail expenses;
• $67,723,611 for Sounder commuter rail expenses;
• $6,519,096 for Tacoma Link light rail expenses;
Section 1c – Project Budget. Sound Transit is authorized to incur a total of $2,509,873,857 for project
outlays, comprised of budgets for the following project types: System Expansion projects
$2,308,823,965 ($2,306,123,965 Proposed 2021 Budget plus $2,700,000 budget revision);
Enhancement projects $35,555,488; State of Good Repair projects $46,078,014; Administrative
projects $119,416,390; and/or such amounts as are contained in revisions to the Proposed 2021
Budget as adopted by the Board. $(12,313,553) in non-system expansion project costs will be charged
to transit operating.
Note: Under Administrative projects (Agency Administration Operating), the chief executive officer is
authorized to incur $2,520,446 for the regionally shared operation and maintenance costs under for the
ORCA fare collection system.

Resolution No. R2020-27 Page 2 of 3

Section 1d – Debt Service. Sound Transit is authorized to incur $106,721,038 in fixed and variable rate
interest and fees on debt and $54,300,000 in principal repayments for a total of $161,021,038 for debt
service on outstanding bonds and loans.
Section 1e – Contributions to Other Governments. Sound Transit is authorized to incur $5,000,000 in
contributions to other governments for the operating and maintenance expenses of First Hill Street car
based on an agreement with the City of Seattle.
Section 1f – Tax Collection and Fees. Sound Transit is authorized to incur $30,560,928 in tax collection
and fees.
Section 1g – Operating Contingency. Sound Transit is authorized to incur $11,000,000 in operating
contingency.
Section 1h – Reserves. Sound Transit is authorized to place in reserve the following amounts:
$5,500,000 for Emergency/Loss and $2,152,534 for Operations and Maintenance, and $4,000,000 for
Regional Affordable Housing Revolving Loan Fund.
Section 2. The Proposed 2021 TIP includes changes in authorized project allocations in the amount
of $189,355,679: $131,048,518 for existing projects and $58,307,161 for new projects. The specific
projects impacted are referenced in Attachment C – Changes to Authorized Project Allocations in the
Proposed 2021 TIP. These changes, together with the revision to the Proposed 2021 TIP equal a new
authorized project allocations of $21,461,151,857.
Section 3. The budget for the period January 1, 2021 to December 31, 2021 as set forth in
Attachment A (2021 Financial Plan and Proposed Budget), and the approved revision to the Proposed
2021 Budget and Proposed 2021 TIP in Attachment B, and the changes authorized by the Board’s
Budget Policy including technical and conforming changes and shifts to annual project budgets between
the prior year and upcoming fiscal years, together constitute the Adopted 2021 Budget and Adopted
2021 TIP as adopted by this Resolution.
Section 4. The Adopted 2021 Budget and Adopted 2021 TIP are not an exclusive authorization of
expenses or capital outlays, except as specified in Section 1c – ORCA and Section 1d – Debt Service.
Authorization of expenditures must comply with Sound Transit’s Procurement, Agreements and
Delegated Authority Policy, Resolution No. R2018-40.
Section 5. The Board affirms the continuing delegation to the Board Administrator made in
Resolution No. R2019-30 execute and file any collection estimate legally required to collect Sound
Transit’s property tax.
Section 6. The Board further authorizes the chief executive officer to take any actions necessary to
implement the policies and determinations of the Board pursuant to this Resolution.

ADOPTED by no less than a two-thirds affirmative vote of the entire membership of the Sound
Transit Board at a regular meeting thereof held on __________________.

__________________________
Kent Keel
ATTEST: Board Chair

_______________________
Kathryn Flores
Board Administrator

Resolution No. R2020-27 Page 3 of 3

Resolution No. R2020-27
Attachment A – Proposed 2021 Budget and Transit Improvement Plan

Link to Proposed 2021 Budget on [Link]:

Proposed 2021 Budget and Transit Improvement Plan

Resolution No. R2020-27 Page 1 of 1

Attachment A
Resolution No. R2020-27
Attachment B – Approved Revision to the Proposed 2021 Budget and Transit
Improvement Plan
Approved by the Executive Committee on December 10, 2020

E-1 #600076 Innovation and Technology Program – Increase Annual Project Budget to
Accommodate Additional Project Scope- Fare Enforcement Pilot
Annual Project Budget Revision: $2,700,000 Authorized Project Allocation Revision: $0
Project Type: System Expansion - Other Funding Source: Long-range Financial Plan
Description: Research, analysis, and implementation of innovative best practices, partnership and technologies to
increase ridership, improve service, and enhance efficiency of regional mobility outside of new investments in large
capital projects.
Justification: One year fare enforcement pilot program focused on development of a compliance based fare
enforcement program movng away from an enforcement based approach. The pilot will include three rounds of
engagements focused on informing, consulting and involving the riding public to validate assumptions, refine
approaches and test fare engagement techniques. A successful pilot would result in a long term positive and
collaborative relationship with our riders and the communities along our alignment. The costs of the pilot include
direct temp staffing, administrative costs, marketing and distribution materials, training and equipment costs for
staff.
(in thousands) 2021 Annual Project Budget Authorized Project Allocation
Proposed Proposed Revised Proposed Project Proposed Revised Proposed
Phase Annual Budget Revision Proposed Budget Allocation Revision Allocation
Operations and Maintenance $ $2,700 $2,700 $40 $2,700 $2,740
Agency Administration 390 390 13,285 13,285
Preliminary Engineering 1,708 1,708 93,279 -2,700 90,579
Final Design
Third Party
ROW Acquitistion and Permits
Construction
Construction Management
Vehicles
Contingency
Total $2,098 $2,700 $4,798 $106,604 $ $106,604

Resolution No. R2020-27 Page 1 of 1

Attachment B
Resolution No. R2020-27
Attachment C – Changes to Authorized Project Allocations in Transit
Improvement Plan
Adoption of the Proposed 2021 Transit Improvement Plan will approve the changes to the
authorized project allocation for the following projects, including the revision ($0 net impact)
approved by the Executive Committee on December 10, 2020.

Total Project Changes to Total Total Project

(in thousands) Allocation 2020 Project Allocation Allocation 2021
Existing Projects with changes
0X002 - Agency Administrative Operating $1,317,759 $90,694 $1,408,454
500051 -SR 522 NE 145th Bus Rapid Transit 69,415 79,155 148,570
500050 - I 405 Bus Rapid Transit 226,118 42,222 268,340
400113 - North Corridor MOW 491 22,366 22,857
300056 - Sounder South Capacity Expansion 3,594 13,778 17,372
300087 - Edmonds & Mukilteo Station Imp 2,511 1,340 3,851
300035 - Kent Station Access Improvements 15,611 1,236 16,847
300040 - Auburn Station Access Improvements 11,441 1,151 12,592
700793 - Signage Improvements 1,293 563 1,856
600143 - Environmental Remediation 500 500 1,000
700645 - Issaquah and Lakewood CCTV Upgrade 0 423 423
6X668 - ST Art 161,201 320 161,521
600145 - Design Criteria Manual 200 100 300
400044 - Link Operating System Enhancement Upgrades 0 58 58
600025 - Environmental Mitigation, Monitoring & Maint. 1,471 5 1,476
804100 - TOD Property Disposition 11,949 (333) 11,615
300026 - Sounder Yard Expansion 20,550 (2,500) 18,050
3X510 - Sounder South Expanded Service 205,568 (4,001) 201,567
300011 - Positive Train Control 53,054 (5,704) 47,350
3X236 - Tukwila Station 45,969 (6,249) 39,720
300027 - PT Defiance Bypass 83,670 (7,000) 76,670
802000 - Administrative Capital 62,284 (14,696) 47,588
5X387 - I-90 2 Way Transit and HOV Stage 3 225,648 (18,000) 207,648
300021 - Tacoma Trestle Track and Signal 161,017 (25,825) 135,192
4X420 - South 200th Link Extension 383,241 (43,600) 339,641
New Projects
700824 - Admin Facilities - 6,208 6,208
864140 - Admin Services - 5,819 5,819
864169 - Station Codes - 5,300 5,300
400033 - Link At-Grade Study - 4,906 4,906
800111 - Fare Paid Zone - 3,340 3,340
300038 - Sounder At-Grade Study - 1,700 1,700
802003 - Replacement Admin Pool Vehicles - 1,663 1,663
600146 - Design & Engineering Stands Update - 1,600 1,600
800112 - Link Line Renaming - 1,168 1,168
700767 - Administrative Pool Vehicles - 1,006 1,006
870115 - HUB Intranet Replacement - 410 410
 Total Project Changes to Total Total Project
Continued (in thousands) Allocation 2020 Project Allocation Allocation 2021
Reclassified Projects*
Existing Projects with Changes
700766 - Operations Enhancement Portfolio Project 26,831 1,197 28,028
700831 - Operations State of Good Repair Portfolio Project 32,842 3,849 36,691
New Projects
700766 - Operations Enhancement Portfolio Project - 5,723 5,723
700831 - Operations State of Good Repair Portfolio Project - 19,465 19,465
Total Project Allocation Changes $3,124,229 $189,356 $3,313,585

* The Operations Enhancement Portfolio and Operations State of Good Repair Portfolio projects were created in the 2021
Proposed Budget to consolidate Operations-managed non-system expansion projects to increase flexibility in prioritizing
and allocating resources. Within the two portfolio projects, sub-projects will be managed and tracked individually, with the
ability to transfer budget between sub-projects, still subject to the budget policy.

Resolution No. R2020-27 Page 2 of 2

Attachment C