MTA OKs Bonds for Rail, Subway, Road Projects
The Metropolitan Transportation Authority board approved the issuance of up to $300 million in new debt Thursday to finance subway, light-rail and highway projects.
Although more precise figures await the sale of the bonds in January, the latest borrowing will keep the county transit agency’s outstanding debt--including principal, interest and fees--in the $7-billion range.
Terry Matsumoto, the MTA’s executive officer for finance, said the agency may also use the opportunity to refinance some of its outstanding bonds to take advantage of lower interest rates. Repayment of the new bonds, like much of the MTA’s existing debt, will be backed by a share of the county’s 1% transit sales tax over the next 30 years.
The Times reported in June that the agency amassed its huge debt building the Metro Rail subway, two light-rail lines and a luxurious high-rise headquarters. Repayment of the debt has become the MTA’s largest single operating expense.
Faced with a federal court consent decree to reduce overcrowding and improve bus service, the MTA board last month approved a plan to buy 2,095 new buses during the next six years to replace most of its aging and troubled fleet.
Consistent with the accelerated bus purchase plan, the board voted Thursday to buy 223 new buses powered by clean-burning compressed natural gas.
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