Los Angeles C Los Angeles County Metropolitan unty Metropolitan - - PowerPoint PPT Presentation
Los Angeles C Los Angeles County Metropolitan unty Metropolitan Transportation Authority ansportation Authority Los Angeles Regional Investors Conference, February 26-27, 2014 Nalini Ahuja Executive Director, Finance and Budget Donna R.
Nalini Ahuja‐Executive Director, Finance and Budget Donna R. Mills – Treasurer
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– Over 400 miles of express routes throughout the County – Buses have traffic signal priority and fewer stops to speed transit
– 18-mile Bus Rapid Transit service that operates along an exclusive right-of way – Transports thousands of commuters between Warner Center in the west San Fernando Valley and the Chatsworth Amtrak/Metrolink Station to the North and the Metro Red Line subway station in North Hollywood
– Express Bus service stretching over 26 miles from El Monte Station to Harbor Gateway Transit Center
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– Blue, Green, Gold, and Exposition serving 67 stations along 70.3 miles
– Red and Purple, serving 16 stations along 17.4 miles of track.
– Expo 2 to Santa Monica – Gold Line Foothill Extension – Crenshaw/LAX Transit Corridor – Regional Connector – Westside Subway Extension Phase One
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– Freeway construction improvements- interchanges, widening and sound walls. – High Occupancy Vehicle (HOV) lane program, in cooperation with Caltrans, funded through a combination of federal, State and local resources. – Metro ExpressLanes, a pilot program on I-10 and I-110 overseen by Metro, Caltrans and several other mobility partners to convert HOV lanes to High Occupancy Toll (HOT) lanes. – Accelerated Regional Transportation Improvements (ARTI) P3 Project.
– Funding partner with four other participating counties – Seven lines, totaling 512 miles and 55 stations. – Service to Riverside, Ventura, Orange, San Bernardino and San Diego counties.
– Freeway service patrols – Over 100 local return and non-profit agencies providing community based transportation.
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Proposition A Proposition A
transportation funding1 Proposition C Proposition C
transportation funding1 Measure R Measure R
1Through FY2013 – Sales tax revenues less administrative fees paid to the State Board of Equalization
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$‐ $100.0 $200.0 $300.0 $400.0 $500.0 $600.0 $700.0 $800.0 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013
*Proposition C and Measure R Revenues are historically similar to Proposition A Revenues
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Mea Measure R R $ 34. $ 34.6 B 14.3% 14.3% Feder Federal $ 34. $ 34.5 B 14.3% 14.3% State State $ 37. $ 37.3 B 15.5% 15.5% Loca Local $ 135.1 $ 135.1 B 55. 55.9%
2009 2009 Long Range T Long Range Transportation ansportation Plan Plan May 2013 Update May 2013 Update Summary of Summary of Sources Sources
$241.5 $241.5 Billion To Billion Total l FY 2013 2013 – FY Y 2040 2040
County
and operational purposes as set forth on the right
Collections
Metro Rail Capital 2% Rail and/or Bus Capital 35% Highway Capital 20% Bus Operations 20% Metrolink 3% Local Return 15% Rail Operations 5%
Allocation Allocation of Measure
R Revenues
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Estimated
Cost
(in $Millions)
Opening Year
Exposition Blvd. LRT Phase II $1,511 FY 2017 Gold Line Foothill LRT Extension 786 FY 2017 Crenshaw/LAX Transit Corridor 2,058 FY 2020 Regional Connector 1,399 FY 2021 Westside Subway Extension – Segment 1 2,861 FY 2023 Largest Transit Projects Subtotal $8,615 I-405 North Carpool Lanes from I-10 to US-101 $1,149 FY 2014 I-5 North Carpool Lanes from State Route 170 to State Route 134 608 FY 2016 I-5 South from Orange County Line to I-605 (includes Carmenita Interchange) 1,894 FY 2017 I-10 Carpool Lanes from I-605 to State Route 57 578 FY 2018 Alameda Corridor East 1,446 FY 2012+ Largest Highway Projects Subtotal $5,675 GR GRAND TOTAL TOTAL $14,29 $14,290
(As of May 2013)
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Long Range Transportation Plan
– Secured a $545.9 million TIFIA loan for the Crenshaw/LAX transit corridor – In final negotiations for $160 million TIFIA loan for Regional Connector project plus FFGA – Application in progress for $856 million Phase One of Westside Subway Extension
calendar 2013, for two to three years of capital funding for highways.
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Category tegory Allowa Allowable Uses & ble Uses & Status Status Debt Policy Debt Policy Maximum Maximum
Transit Capital 35% – New Rail and/or Bus Rapid Transit
New Rail and/or Bus Rapid Transit. Initial issuance occurred in CY2010. 87% of MR Transit Capital – New Rail and/ or Bus Rapid Transit revenues.
Transit Capital 3% – Metrolink Capital Improvement Projects Within LA County
Operations, Maintenance and Expansion for system improvements, rail yards and rail cars. Currently no debt service. Issuance likely in the future. 87% of MR Transit Capital – Metrolink Capital Improvements in LA County.
Transit Capital 2% – Metro Rail Capital 87% of MR Transit Capital
System improvements, rail yards and rail cars. Initial issuance
87% of MR Transit Capital – Metro Rail Capital
Highway Capital 20% –
Carpool lanes, highways, goods movement, grade separations and
60% of MR Highway Capital
Operations 5% – Rail Operations
Rail operations for new transit project operations and maintenance. Currently no debt service. No debt issuance permitted. No debt issuance.
Operations 20% – Bus Operations
Bus operations for countywide bus service and maintenance. Currently no debt service. No debt issuance permitted. No debt issuance.
Local Return 15% –
Major street resurfacing, rehabilitation and reconstruction; pothole repair; left turn signals; bikeways, pedestrian improvements; streetscapes; signal synchronization; and transit. Distributed to localities based on population. N/A
Measure R Measure R Debt Affordability T Debt Affordability Targets and Policy Limits rgets and Policy Limits
Prop A Prop A Prop C rop C Measure R easure R Trust Structure ust Structure Payments secured by Trust Agreement/ Trustee intercept Payments secured by Trust Agreement/ Trustee intercept Payments secured by Trust Agreement/ Trustee intercept Fu Funding S Source ½ cent sales tax approved 1980 (no sunset)
25% Local Jurisdiction and administrative fees) ½ cent sales tax approved 1990 (no sunset)
20% Local Jurisdiction and administrative fees) ½ cent sales tax approved 2008 (30 year sunset)
15% Local Jurisdiction and administrative fees) Flow of F Flow of Funds nds
Bonds
Notes or Other Obligations
Notes or Other Obligations
Bonds, Notes or Other Obligations
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(Moody (Moody’s/S&P/Fitch) s/S&P/Fitch)
Prop A – 1st Tier Senior Bonds $1,249,900,000 Aa2/AAA/NR Prop A – 2nd Tier Senior Bonds 20,520,000 Aa3/AA-/NR Prop C – Senior Bonds 1,316,285,000 Aa3/AA+/AA Measure R – Senior Bonds 701,935,000 Aa2/AAA/NR General Revenue Bonds 148,685,000 A1/A/NR Prop A Commercial Paper 119,020,000 P-1/A-1
(Sumitomo/Union LOCs)
Prop C Commercial Paper 21,594,000 P-1/A-1
(State Street LOC)
Prop C Revolving Credit Facility 45,000,000 NR Outstandi tanding Deb ebt $3,622,939,000 3,622,939,000
Propo Proposition C Sales sition C Sales Tax ax Cover verage History ge History
(in $Mill (in $Millions)
Year Year Net Sales Net Sales Tax ax Revenue Revenue Alloca Allocatio tion to to Local Local Governments Governments Pledge Pledged Revenues Revenues Senior Lien Senior Lien Cover Coverage ge 2007 $686.3 (137.3) $549.0 5.86x 2008 683.5 (136.7) 546.8 5.31x 2009 620.9 (124.2) 496.7 4.22x 2010 565.8 (113.2) 452.6 4.29x 2011 601.9 (120.4) 481.5 4.28x 2012 648.8 (129.8) 519.0 4.68x 2013 687.3 (137.5) 549.9 4.81x
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strong coverage on its long term debt supported by Proposition A and Proposition C
proposition is used for local agencies, the remainder is pledged to pay the Sales Tax Revenue bonds.
– Proposition A: 25% to local agencies – Proposition C: 20% to local agencies – Measure R: 15% to local agencies
– Proposition A: 3.39x – Proposition C: 4.81x – Measure R: 10.85x Propo Proposition A Sales sition A Sales Tax ax Cover verage History ge History
(in $Mill (in $Millions)
Year Year Net Sales Net Sales Tax ax Revenue Revenue Alloca Allocatio tion to to Local Local Governments Governments Pledge Pledged Revenues Revenues Senior Lien Senior Lien Cover Coverage ge 2007 $686.2 (171.5) $514.6 3.60x 2008 683.4 (170.8) 512.5 3.47x 2009 620.8 (155.2) 465.6 3.03x 2010 565.7 (141.4) 424.3 2.71x 2011 601.9 (150.5) 451.4 3.00x 2012 648.7 (162.2) 486.5 3.04x 2013 687.2 (171.8) 515.4 3.39x
Measure Measure R Sales R Sales Tax C x Cover verage ge History History
(in $Mill (in $Millions)
Year Year Net Sales Net Sales Tax ax Revenue Revenue Alloca Allocatio tion to to Local Local Governments Governments Pledge Pledged Revenues Revenues Senior Lien Senior Lien Cover Coverage ge 2011 $598.6 (89.8) $508.9 24.42x 2012 645.0 (96.8) 548.3 10.22x 2013 684.9 (102.7) 582.1 10.85x
Varia riable Rate le Rate Auction Auction Rate Rate
Pr Prop A 2008-A
Variable Rate Bon riable Rate Bonds $257,000,000 ( 57,000,000 (Weekly M ekly Mode) de) Gener neral Reven l Revenue ue Bo Bonds nds Ser Series 2004-A s 2004-A Aucti Auction
Rate Secu Securiti ities
Out Outstandin tanding P Prin incipal $63,750,000 $63,825,000 $127,775,000 $86,175,000 Issu Issuance Date ce Date 8/1/2011 8/1/2011 8/1/2011 Expir Expiratio tion Date Date 8/4/2014 8/1/2014 8/1/2014 Liqui Liquidity ity Provider Provider Bank of America (SBPA) Sumitomo Mitsui (direct purchase) RBC (direct purchase) None Index Index/Spread n/a SIFMA + 60 bps SIFMA + 55 bps Failed Auction Rate is 2.25x 1 month LIBOR Associa Associated Swap Swap Bank of Montreal Bank of Montreal Deutsche Bank Bank of Montreal Swap Fixed Swap Fixed Rate Rate 3.373% 3.373% 3.358% 3.501% Swap Varia Swap Variable le Rate Rate 63% 1 month L +14bps 63% 1 month L +14bps 63% of 1 month L +14bps 64% of 1 month L + 21bp
Commercial Pa mmercial Paper per
Propositi Proposition C
Commercia Commercial Paper l Paper Propositi Proposition C
Propositi Proposition A
Commercia Commercial Paper l Paper Out Outstandin tanding P Prin incipal $21,594,000 $45,000,000 $119,020,000 Issu Issuance Date ce Date 4/24/2013 4/24/2013 3/11/2013 Expir Expiratio tion Date Date 4/22/2016 4/22/2016 3/11/2016 Liqui Liquidity ity Provider Provider State Street Bank (LOC) $75,000,000 Wells Fargo Bank (RCF) $75,000,000 Sumitomo/Union Bank (LOC) $150,000,000
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MTM MTM Valuation Report as luation Report as of
December 27, 2013
Cancellable Swaps ncellable Swaps
Associate Associated Bo Bonds Cli Client Pays Pays Client R ient Receives ceives Effec Effective Date Date Maturi Maturity ty Date Date No Notional
Bank Co Bank Counte unterparty rparty Mo Moody's
&P Fitch Accrued Accrued Interes Interest MTM Val MTM Value 2004 Gateway Bonds 3.501% 64% of USD- LIBOR + 0.21% 9/22/2004 7/1/2027 $86,175,000 Bank of Montreal Aa3 A+ AA- ($1,455,180) ($2,580,848) Prop A Series 2008- A1 and A2 3.373% 63% of USD- LIBOR + 0.14% 8/23/2005 7/1/2031 $127,575,000 Bank of Montreal Aa3 A+ AA- ($2,081,046) ($7,314,612) Prop A Series 2008- A3 and A4 3.358% 63% of USD- LIBOR + 0.14% 8/23/2005 7/1/2031 $127,775,000 Deutsche Bank AG - New York Branch A2 A A+ ($2,074,938) ($7,276,146) TOTAL TOTAL ($5,611,16 ($5,611,163) 3) ($17,171,6 ($17,171,606) 06)
Bank of Montreal (Aa3/ A+) 63% Deutsche Bank (A2 / A) 37%
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conservative financial management
– Large population base, economic diversity and above average wealth levels reinforce the highest credit quality – Lowest sales tax volatility among California self-help counties – Recovering sales tax base, increasing 7.8% from FY11 to FY12 and 6.2% from FY12 to FY13
– Gross pledge of tax revenues – independent of operations and capital program – Trustee intercept and monthly principal & interest set-asides – Allocation to ordinance uses and need to operate system restrict future borrowing
– Successful management of Prop A and Prop C over two decades – Proven ability to deliver capital program – Long Range Transportation Plan remains intact despite sales tax adjustments
– 67% yes vote on Measure R (November 2008) – Metro is a key element in regional economy and growth
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Contact Us:
Donna R. Mills – Treasurer
MillsD@Metro.net 213‐922‐4047
LuAnne Edwards Schurtz – Assistant Treasurer
SchurtzL@Metro.net 213‐922‐2554