The Tacoma Narrows Bridge Citizen Advisory Committee, as well as officials from the Washington State Traffic Commission and the Washington State Department of Transportation, got an earful during Wednesday night’s (Jan. 11) public workshop to begin discussing increased toll rates for the new bridge. Rates are tentatively set to go up on July 1.

Committee members in attendance included Chair Alan Weaver (Gig Harbor), Vice Chair Chris Myers (Gig Harbor), Ron Jones (Gig Harbor), Jim Pasin (Gig Harbor) and Amy Igloi (Port Orchard). Gig Harbor’s Melody Griggs and Tracyton’s Ted Hilliard did not attend the meeting.

Also on hand were WSDOT Toll Division Director Craig Stone, WSDOT Assistant Director of Financial Planning Jeff Caldwell, state financial analyst Noah Crocker, WSTC Executive Director Reema Griffith and WSTC member Dan O’Neal.

WSDOT kicked off the meeting by updating the committee with the latest traffic and revenue numbers. They also provided four toll scenarios, where the electronic rate would jump from $2.75 to $4.25 or $4.50, the manual rate from $4 to $5.50 or $6, and the photo tolling rate from $5.50 to $7 or $7.50.

Bridge construction was funded through 10 bond sales that set in place a 30-year debt structure when the project was originally financed. The debt payment schedule for these bonds increases over the first 17 years. Step increases in tolls were anticipated by the WSDOT to meet these debt payments.

In addition, beginning in December, the state must begin repaying $57 million in deferred sales tax payments from the construction project. Annual payments of $5.7 million will be made for the next 10 years.

At the end of this fiscal year — June 30 — the reserve fund will be $2.7 million short of the recommended $6.6 million balance. If tolls aren’t raised, the fund will be empty a year later and the bridge itself will be $10.9 million in debt for a total shortfall of $18.7 million.

The bottom line is the state has pay for the new bridge and that means paying more to cross the bridge.

“We have a fiduciary obligation to make these payments,” O’Neal said.

“Tolls will have to go up because of the way financing is structured,” Weaver explained.

Summing up the task of making toll hike recommendations to the WSTC, Weaver noted, “Unfortunately, this is a bad news session.”

Igoli, who owns Amy’s on the Bay restaurant in Port Orchard agreed: “I wasn’t looking forward to coming here today.”

It would do no good to make recommendations “way off the mark,” Weaver pointed out when it comes to advocating new toll rates.

“At least this way, we have some input,” Weaver said.

Several people in attendance had input as well, and many of them were not happy with the prospect of increased toll rates.

Gig Harbor resident Sandy Bradley said a toll hike would mean she wouldn’t be able to afford to cross the bridge, and questioned projected revenue increases “because people will stop crossing the bridge.”

Larry Treleven, chair of the 6th District of the Association of Washington Business and vice president of Sprague Pest Solutions in Tacoma, had concerns about how paying more to cross the bridge could affect commerce.

“We’re just concerned for the cost of business,” he said.

Much of the discussion during the meeting centered on the maintaining of a minimum bridge reserve fund balance of 12.5 percent of the annual total bridge costs to cover revenue shortfalls or cost increases.

Gig Harbor’s Randy Boss, a vocal critic of not just upping toll rates but building the new bridge in the first place, complained that the reserve fund is not authorized in law, adding that citizens are paying $1.6 million for the WSDOT to self-insure its own bridge, which he believes should be the state’s obligation.

“So, we’re getting bit twice,” he said. “It seems to me it’s a revenue stream for the state.”

While the tone was mostly civil, at one point — before the public comment and question session just prior to adjournment — Weaver raised his voice in telling Boss several times to “be quiet.”

It wasn’t all bad news, however.

Operating expenses are declining, Stone reported.

State Sen. Derek Kilmer, D-Gig Harbor, who was in audience, said there is no requirement in the bond covenants for a minimum fund balance, and said he was glad the commission would at least consider making a change to the minimum fund balance.

Kilmer announced he introduced legislation earlier in the day in the form of Senate Bill 6073, which would exempt the Narrows Bridge from the sales tax on construction, shaving roughly $45 million from the cost to toll payers over the next decade.

He said paying a toll to pay a tax is not a good idea.

“I think that’s bad policy, and it’s not fair to our community,” he said.

The elimination of the sales tax would save drivers about 40 cents per round trip, Pasin said.

Also in the audience was Rep. Larry Seaquist, D-Gig Harbor, who said he would be introducing a companion bill in the House of Representatives.

The original now-10-year-old financing plan for the Narrows Bridge envisioned tolls rising every two years to meet escalating debt service obligations, eventually reaching as high as $6 for both cash payers and Good to Go! transponder users.  Also, the original financing planning deferred the sales tax on the construction of the bridge until 2012, at which point it would be paid in annual installments for the next decade.

The next meeting will be Feb. 8 at the Gig Harbor Civic Center, 3510 Grandview St. There will be a WSDOT open house at 5:30 p.m. followed by a citizen committee meeting at 6:30 p.m. The committee is expected to make a recommendation to the WSTC on March 20.

Reporter Brett Davis can be reached at 253-853-9243 or by email at brett.davis@gateline.com.