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State treasurer: SR 520 toll corridor meets coverage requirements and can support an additional $254 million of bonds
Summary
Deputy Treasurer Jason Richter told commissioners SR 520 corridor revenues are modestly stronger than last year’s forecast, meeting coverage covenants comfortably and that modeling shows the corridor could support issuance of $254 million of currently authorized but unissued bonds.
Jason Richter, deputy treasurer in the State Treasurer’s Office, presented the annual SR 520 toll‑facility financial review. Using updated traffic and revenue projections and fiscal‑year 2025 audited results, Richter said the corridor’s net revenues were projected about 1.2% better than the prior year’s forecast and that coverage requirements for outstanding pledges are being met well above covenant levels.
Richter said the corridor’s triple‑pledged bonds have a rate covenant of 1.25 and a rate policy target of 1.3 times coverage; current modeling shows coverage above those thresholds ("better than 2.11 times coverage," he said). The office also ran a scenario assuming issuance of $254 million of additional bonding (authorized but not yet issued); under that scenario the corridor remained within covenant and policy targets though the margin narrowed.
Richter noted $254 million of bonds are authorized but unissued and that the legislature was considering additional bonding. He said the office will update the commission when legislative action clarifies the amount and timing of any new authorizations.
Commissioners asked about major forecast risks; Richter said toll forecasting involves many uncertain variables (interest rates, demographics, economy, unforeseen events) but that the corridor has been stress‑tested (pandemic) and benefits from a revenue stabilization account and conservative debt structuring.
