Ballot Question: "Shall the powers, duties, and functions of the city, through its director of transportation services, include establishment of a steel wheel on steel rail transit system?"

The Hawaii Business Roundtable supports the rail mass transit system and a "YES" vote on the ballot question.

The Roundtable conducted an assessment of the City's projections of the cost to build, maintain and operate the proposed steel wheel on steel rail system.

• The build costs for construction, contingencies and inflation factors were determined to be reasonable estimates.
• The maintenance and operational cost estimates were determined to be understated by approximately 15%, or just under $10 million annually in 2019 dollars.
• Additionally, the City's estimates for the growth in the .5% General Excise Tax revenue was based on 2006 data. Given the current and anticipated worsening economic climate, a more conservative estimate was used to adjust the revenue downward by approximately 50 percent. Based on this revised forecast, the expiration date for the general excise tax for rail would need to be extended from 2022 to 2027. At that point, the system would be paid in full.

Lastly, the current plan does not call for a Transit Authority to oversee construction and operation of the system. The Roundtable feels strongly that a transit authority with a separate board is an important consideration to ensure independence, accountability, and a fully integrated transportation solution.

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