Washington County Board Gets Details on Pulling Out of CTIB

The Washington County Board on Tuesday got a detailed look at what it would take for the county to pull out of a metro-wide transit board whose projects are funded by a quarter-cent sales tax.

Commissioner Bill Pulkrabek in recent weeks about Washington County’s involvement in the Counties Transit Improvement Board (CTIB), and Tuesday’s workshop quickly became a platform for commissioners to weigh in on the matter.

Opting out of CTIB would essentially be a three-year process that would require the county to pay its share of debt obligations. That figure would be at least $8.1 million, though the final total would be higher based on further information of financial obligations from CTIB officials.

If commissioners decide to withdraw, Washington County could continue collecting the sales tax to pay off its debt obligations or find another mechanism to repay the funds.

By 2013, Washington County taxpayers will have contributed $20 million to $25 million to CTIB, and will have gotten back almost $11 million in funds for projects, prompting Pulkrabek to question its value to the area. (After 2013, the funds are distributed through a grant process.)

Pulkrabek also pointed to 2017, when project cost estimates show Washington County potentially seeking as much as $115 million from CTIB, though projections indicate that the tax won’t raise that much revenue. CTIB could be forced to issue more bonds or raise the quarter-cent sales tax, he said.

As for Washington County ever seeing that money: “I just don’t see it happening,” said Pulkrabek who represents Oakdale and part of Woodbury.

Commissioner Lisa Weik, who represents the bulk of Woodbury on the county board, said the county’s participation on the board opens the door for more federal funds for area transit projects. She also noted that the $115 million figure for 2017 was at the high end of a range.

Many of the projects in Washington County are still in the study phase, Weik said, specifically the Gateway Corridor, and it makes sense to remain on CTIB to see those initiatives through.

“I don’t see any plausible reason to walk away,” Weik said, adding later: “If it ain’t broke, don’t fix it.”

Board Chair Gary Kriesel, who also supports staying on CTIB, said Tuesday’s discussion was meant to be informative, not a venue for further debate. The workshop was supposed to be a jumping off point should a commissioner have a better idea for funding area transit projects, he said. But Kriesel did say Washington County’s involvement would pay off down the road.

“We’re not going to get there ourselves,” he said. “We’re not going to get there with property taxes.”

Commissioner Autumn Lehrke said CTIB is not a stable funding source—pointing to proposed legislation that may see the state taking a portion of the body's funds—and questioned whether area cities are supportive of the county’s continued involvement.

Ted Schoenecker, county transportation planning manager, outlined the details of the joint-powers agreement. He also provided a sample withdrawal process schedule:

April 2011: Request CTIB to determine obligations.

June 2011: CTIB determines obligations.

June 28, 2011: County adopts resolution to withdraw.

June 29, 2011: Deliver withdrawal resolution to CTIB Chair.

July 2011-Jan. 2, 2014: Sales tax collected as part of county’s share for CTIB.

January 2014-Aug. 30, 2015: Sales tax collected for county’s outstanding debt.

Sept. 1, 2015: Effective date of withdrawal.

Commissioner Dennis Hegberg had another obligation and was absent from the workshop discussion.