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LACMTA Presentation Outline
> Agency Overview
> Key Projects / Initiatives
> Credit Profile, Current Debt & Debt Issuance Outlook
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LACMTA Overview
Transportation planner and coordinator, designer, builder and operator > Regional transportation planning agency for the nation’s
most populous county > Largest public transit operator west of Chicago > Service area of 1,433 square miles across 88 cities > Estimated 915,000 weekday passenger ridership on buses > Estimated 358,000 weekday passenger ridership on rail lines > Over 2,200 clean air buses > 95 Rail Stations > Provided 403 million rides in FY 2017
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Governed by 14-member Board of Directors > 5 members of the County Board of Supervisors > Mayor of the City of Los Angeles > 2 public members, appointed by the Mayor of Los
Angeles > 1 member of City Council of Los Angeles, appointed by
the Mayor of Los Angeles > 4 members appointed by a County Selection Committee > 1 non-voting member appointed by the Governor
LACMTA Overview (cont.)
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LACMTA Overview (cont.)
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Metro Rail System > 105 miles of rail > 4 light rail lines > 2 heavy rail lines > 2 busways
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LACMTA Key Projects / Initiatives
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> Measure R Projects Completed Transit: > Orange Line extension to Chatsworth – June 2012 > Gold Line Foothill to Azusa – March 2016 > EXPO Line to Santa Monica – April 2012 and May 2016 Highway: > Passons Boulevard grade separation project in Pico Rivera opened to
traffic in November 2012. > Valley View Avenue grade separation project in Santa Fe Springs opened
to traffic in October 2014. > I-5 South Capacity Enhancement Carmenita Road Interchange: new
Carmenita bridge opened to traffic on July 18, 2016. > I-5 North Capacity Enhancements from SR-134 to SR-118 widening:
Segment 2 SR-170 to Buena Vista construction completed December 2015; Segment 1 SR-118 to SR-170 construction completed July 2016.
LACMTA Key Projects / Initiatives Crenshaw / LAX Transit Project
Project Description: 8.5-mile, $2.05 billion light rail line will travel to the Metro Green Line and will serve the cities of Los Angeles, Inglewood, and El Segundo; and portions of unincorporated Los Angeles County.
Projected Opening Date: October 2019 Major Funding Sources: $529,300,000 Measure R $554,278,000 Federal, State, Local and other sources $545,900,000 Measure R TIFIA Loan $428,500,000 Propositions A & C
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LACMTA Key Projects / Initiatives Regional Connector Transit Project
Project Description: 1.9-mile, $1.76 billion alignment will serve Little Tokyo, the Arts District, Civic Center, The Historic Core, Broadway, Grand Ave, Bunker Hill, Flower St and the Financial District.
Projected Opening Date: November 2021
Major Funding Sources: $670,000,000 Full Funding Grant Agreement (FFGA) $926,000,000 Federal, State, Local and other sources $160,000,000 Measure R TIFIA Loan
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LACMTA Key Projects / Initiatives Purple Line Extension Section 1
Project Description: 3.92-mile, $3.15 billion heavy rail line beginning at the Wilshire/Western station extending west with new stations at Wilshire/La Brea, Wilshire/Fairfax and Wilshire/La Cienega.
Projected Opening Date: November 2023
Major Funding Sources: $1,250,000,000 Full Funding Grant Agreement (FFGA) $875,000,000 Measure R $856,000,000 Measure R TIFIA Loan $174,000,000 Federal, State, Local & Other Sources
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LACMTA Key Projects / Initiatives
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> Gold Line Foothill extension to Claremont groundbreaking December 2, 2017
> Official groundbreaking ceremony for the Westside Purple Line Extension Section 2 took place February 23, 2018
> The Westside Purple Line Extension Section 3 project expects to bring a tunneling contract to MTA Board in 2018
LACMTA Key Projects / Initiatives
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“Twenty-Eight by 2028” Highlight 28 major transit and highway projects for completion in time for the 2028 Olympic and Paralympic Games > 17 projects already slated for completion by 2028 > 8 “Aspirational” projects would require accelerated funding
> 3 additional projects that require resources
LACMTA Key Projects / Initiatives “Twenty-Eight by 2028” Project List
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Project Target
Completion Date
Current Completion
Date Project
Target Completion
Date
Current Completion
Date
Crenshaw/LAX Line 2019 2019 Purple Line Extension Section 3 2026 2026 MicroTransit** 2019 2019 Sepulveda Pass ExpressLanes 2026 2026 Regional Connector 2021 2021 East San Fernando Valley 2027 2027
New Bus Rapid Transit Corridor (Phase 1) 2022 2022 I-105 ExpressLanes* 2027 2029
Orange and Red Lines to Gold Line Transit Connector (North Hollywood to Pasadena)
2022 2022 I-710 South Corridor Early Action* 2027 2032
Airport Metro Connector Station 2023 2023 South Bay Light Rail Extension* 2027 2030
I-5 North County Capacity Enhancements 2023 2023 Blue Line Signal and Washington/Flower Junction Improvements**
2028 2028
North San Fernando Valley 2023 2023 I-10 ExpressLanes I-605 to San Bernardino Line**
2028 2030
Purple Line Extension Section 1 2023 2023 SR 57/60 Interchange Improvements* 2028 2031
Gold Line Foothill Extension to Claremont (with ability to extend to Montclair)
2025 2025 Vermont Transit Corridor 2028 2028
LA River Waterway & System Bike Path 2025 2025 Sepulveda Transit Corridor* 2028 2033
LA River Bike Path and Mobility Hub-San Fernando Valley
2025 2025 Gold Line Eastside Extension to Whittier or South El Monte*
2028 2035
Orange Line Travel Time and Safety Improvements 2025 2025 West Santa Ana Branch* 2028 2041
Purple Line Extension Section 2 2025 2025 I-405 South Bay Curve Improvements* 2028 2047
*Accelerated project. **Non-Measure R /Non-Measure M Project.
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LACMTA Key Projects / Initiatives “NextGen Bus Study” > Bus Ridership declining nationally
> FY18 budget assumes a 19% Fare revenue recovery ratio
> Metro launched a bus network reimagining study to guide
restructuring the system
LACMTA Projects / Initiatives
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> P3 to accelerate Projects > Metro considering Public Private Partnerships as a means
to accelerate delivery of much needed transportation projects
> Potential P3 Candidates > Sepulveda Pass Transit Corridor
> Possible passenger rail and/or toll road in tunnel(s) between the San Fernando Valley and Westside to LAX
> West Santa Ana Branch > 20-mile light rail transit line that would connect
downtown LA to southeast LA County
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Overview of Credit & Debt Funding Sources
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> Authorized by voter approval > Applies to both incorporated and unincorporated areas of Los Angeles
County, including areas not served by Metro > Local sales tax revenues securing debt are remitted monthly by the
California Department of Tax and Fee Administration directly to the bond trustee, who deducts 1/6 interest and 1/12 principal before remitting to LACMTA
Sales Tax Revenue Source
Effective Year Tax Rate Sunset Allocation %Local/LACMTA
Proposition A 1982 Half-cent None 25/75%
Proposition C 1991 Half-cent None 20/80%
Measure R 2009 Half-cent 2039 15/85%
Measure M 2017 Half-cent(1) None 16/84%(2)
(1) When Measure R sunsets, Measure M increases to 1 cent. (2) Allocation % will change to 19/81% July 1, 2039.
Overview of Credit & Debt Sales Tax Revenue
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> Sales tax revenues driven by a large population with above average demographic and economic characteristics > Nation’s most populous county, with over 10 million residents representing 224
languages > Per capita income levels above national average > Large economy in the global market with healthy diversity > One of the nation’s largest counties at 4,100 square miles (larger than the
combined areas of the states of Rhode Island and Delaware)
> L.A. County is a leader in education & research with three of the world’s leading Research Universities: Caltech, UCLA and USC, plus 110 other Colleges and Universities in our region
Overview of Credit & Debt Sales Tax Revenue
Leading Companies Headquartered in LA County
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Overview of Credit & Debt Sales Tax Revenues(1)
*LACMTA’s FY 2014 audited financial statements include an increase in Proposition A and Proposition C sales tax revenues of $61.4 million each due to an accounting accrual adjustment resulting in a one-time increase to the reported amount. The adjustments of $61.4 million has been excluded in the above table. **FY18 Board Approved Budget. *** Measure M collections started on July 1, 2017. (1) Sales Tax Revenues are net of CDTFA fees and before Local Return allocation.
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$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
$3.50
2010 2011 2012 2013 2014* 2015 2016 2017 2018**
Bill
ion
s
Sales Tax Revenues ($ in billions)
Proposition A Measure R Proposition C Measure M***
Overview of Credit & Debt Structural & Policy Limits Restrict Borrowing
(1) Local return set to increase to 19% in FY2040. (2)Legal ABT is 1.3x MADs; the effective coverage under the Debt Policy is 2.28x
> Bonds are largely restricted to ordinance capital allocation categories
> System operating requirements restrict borrowing > Debt Policy further constrains how much debt we issue
Proposition A Proposition C Measure R Measure M
Bondable Percentage under Debt Policy
30% 35% 47% 50%
Non-Bondable Percentage
45% 45% 38% 34%
Local Return 25% 20% 15% 16%(1)
Legal ABT 2.46x MADs 1.3x MADs(2) 2.5x MADs TBD
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Overview of Credit & Debt Growing Revenue, Structural & Policy Limits = High Coverage Ratios
Year Proposition A Proposition C Measure R General Rev
2010 2.71x 4.29x NA 14.23x
2011 3.00x 4.28x 24.5x 34.43x
2012 3.36x 4.62x 10.2x 32.44x
2013 3.39x 4.81x 10.80x 31.57x
2014(1) 3.71x 4.46x 11.30x 31.19x
2015 3.87x 4.40x 11.80x 40.94x
2016 4.01x 4.52x 12.10x 32.72x
2017 4.40x 4.44x 8.40x 28.33x (1)Amounts shown for FY2014 Net Sales Tax Revenue, Pledged Revenue and Debt Service Coverage are reported and calculated excluding the $61.4 million accounting accrual adjustment for Proposition A and the Proposition C Sales Taxes.
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Short-Term Obligations
Short-Term Obligations Commercial Paper & Revolving Credit
Proposition A Program Proposition C Program Measure R Program
Program Capacity $350,000,000 $150,000,000 $300,000,000
Outstanding Par $107,500,000 $50,309,000 $65,422,743
Issuance Date 3/8/2016 3/29/2016 11/1/2015
Expiration 3/7/2019 3/28/2019 11/20/2020
Liquidity Provider Sumitomo
MUFG Union Bank Citibank(1)
Bank of America Wells Fargo
Bank of the West State Street
RBC Capital Markets
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(1) The Citibank Letter of Credit was entered into on 8/17/2017 and expires on 7/31/2020.
Overview of Credit & debt Current Debt Portfolio and Ratings
Outstanding Debt March 1, 2018 Moody’s Standard & Poor’s
Fitch
LONG-TERM DEBT
Issue Type Principal Outstanding
Proposition A Senior Bonds $1,285,870,000 Aa1 AAA NR
Proposition C Bonds $1,434,255,000 Aa2 AA+ AA
Measure R Bonds $1,145,995,000 Aa1 AAA NR
Measure R TIFIA Loans* $1,211,303,044 NR Private Private
General Revenue $97,610,000 Aa2 AA NR
Total Long-Term Debt $5,175,033,044
SHORT-TERM DEBT
Issue Type Principal Outstanding
Proposition A Commercial Paper $107,500,000 P-1 A-1 NR
Proposition C Commercial Paper $5,309,000 P-1 A-1 NR
Proposition C Revolving Credit $45,000,000 NR NR NR
Measure R Short-term Obligations $65,422,743 NR NR NR
Total Short-Term Debt $223,231,743
TOTAL DEBT OUTSTANDING $5,398,264,787
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Overview of Credit & Debt Future Debt Activity
Current Long-term Debt Issuance Projections
FY2019-2023($ in millions)
Proposition A $745
Proposition C 652
Measure R 1,708
Measure M 2,206
Total $5,311
Upcoming Transactions > Proposition A
> Refunding transaction of approximately $14 million
> Sale Date: April 2018
> Proposition C > Refunding transaction of approximately $56 million > Sale Date: April 2018
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Overview of Credit & Debt LACMTA’s Strengths
> Growing population and economic diversity
> Broad voter support for Metro projects
> Current Sales Taxes provide 2% in perpetuity
> Trustee intercept for monthly principal and interest set-asides
> Debt Policy limitations result in high debt service coverage
> Successful completion of projects
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Contact Us
Title Contact info
Donna Mills Treasurer [email protected] 213.922.4047
LuAnne Edwards Schurtz Deputy Executive Officer, Finance [email protected] 213.922.2554
Danny Jasper Debt Manager [email protected] 213.922.4026
www.metro.net/about/financebudget/debt-program
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