7 Steps to Greater SelfSufficiency

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7 Steps to Greater Self-Sufficiency

• Steve Heminger, Executive Director
• Metropolitan Transportation Commission
• Atlanta LINK Program
• May 1, 2003

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• Its our money, and were free to spend it any
  way we pleaseIf you have money you spend it,
  and win.
• Rose Kennedy

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1. Devolution
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• 1923 Local Road Share
• First state gas tax of 2 cents per gallon
  enacted, with 1 cent for state highway account
  and 1 cent for aid to counties establishes
  50/50 precedent.
• 1927 Regional Split
• North/south split enacted, whereby 49 of state
  highway account capital funds must be spent in
  southern California and 51 in northern
  California (current split stands at 60 south,
  40 north).
• 1961 County Minimums
• County minimum formula enacted at least 70 of
  state highway account capital funds both
  federal and state gas taxes must be spent in
  each county based on a population/road mile
  formula.

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• 1992 Suballocation on Steroids
• State legislature passes ISTEA implementing bill
  that not only codifies the federal suballocation
  of STP funds, but takes extra step of
  suballocating CMAQ funds to MPOs in air quality
  non-attainment and maintenance areas.
• 1997 Amicable Divorce
• State legislature passes Senate Bill 45 which
  guarantees that MPOs have project selection
  authority over 75 of state highway account
  spending the remaining 25 of funds are
  programmed by CTC. Regional role is to match
  transportation funds with local land use
  decisions. State role is to facilitate travel
  to and through metropolitan areas.

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TEA 21 STP and CMAQ ProgramBay Area Total 754
million
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TEA 21 STIP ProgrammingBay Area Total 1.3
billion
Includes state transportation revenues combined
with TEA 21
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2. United Front
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Resolution No. 1876
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Resolution No. 3434Map of Projects
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Resolution No. 3434Service Characteristics

• 140 new route miles of rail
• 600 new route miles of express bus
• 58 average increase in service levels for
  existing corridors
• 38.6 million new riders per year
• (estimated for fully funded projects)
• Average cost effectiveness of 20.35 per new
  rider (estimated for fully funded projects)

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3. Self Help
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Voting Results on Transportation Funding Ballot
Measures
Bay Area vs. State
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Sales taxes outstrip the STIP

• In each of the five Bay Area counties with a
  special transportation sales tax in place, the
  proceeds from this levy exceed the countys share
  of funds from the STIP.

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Projected Bay Area Transportation Revenues 2002
2026
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4. Swaps (part I)
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Regional Measure 1 Projects 1.6 Billion
Bay Area Toll Authority
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Three New Bridges
Carquinez Bridge Replacement
San Mateo-Hayward Widening
New Benicia-Martinez Bridge
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The Original Plan of Finance

• BATA developed a Plan of Finance with a prudent
  mix of fixed and variable rate debt.
• While existing assets act as a natural hedge
  against variable rate debt, BATA has a limited
  amount of variable rate capacity given its
  limited ability to increase revenues.

Debt mix 67 Fixed Rate 33 Variable Rate
4.18
5.50
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The Current Plan of Finance

• After the execution of the 2002 swap, BATA has
  approximately 200 million in additional fixed
  rate debt and 300 million in additional variable
  rate debt to implement.
• The 2002 swap successfully locked in a fixed rate
  at 139 bp (1.39) below the current assumed fixed
  rate in the Plan of Finance.

4.86
3.60
(To Be Financed)
4.11(1)
5.50
Debt mix 67 Fixed Rate 33 Variable Rate
(To Be Financed)
(1) Excludes annual liquidity and remarketing
fees.
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Savings Realized

• BATA has limited variable rate capacity, and the
  2002 and 2003 swaps were designed to lock in
  interest rates at levels below the current market
  as well as the assumptions for the fixed rate
  component of the Plan of Finance.

Current Plan of Finance
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5. Swaps (part II)
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Taking Advantage of Diverse Portfolio
Santa Clara/MTC Swap

• MTC assisted Santa Clara Sales Tax Authority in
  delivering State Route 17/85 interchange project
  by advancing 19.3 million in federal funding
  capacity.
• Santa Clara paid MTC back with local sales tax
  dollars cash.
• MTC used new cash account to facilitate future
  swaps of local monies to projects having
  difficulty obligating federal dollars (get out
  of jail free card).

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6. Use It or Lose It
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• State Law (SB 45 and AB 1012) requires regions to
  obligate federal and state funds by certain
  deadlines, or risk losing the money
• MTC has established even more aggressive
  deadlines in the Bay Area
• MTC has financial tracking system to monitor
  performance and provides technical assistance to
  speed project delivery

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Bay Area Project Delivery Keeps Pace With
Appropriations
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7. Discount Shopping
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Freeway Service Patrol

• 50 of traffic congestion is incident-related
• FSP fleet of 74 tow trucks patrol 450 miles of
  freeway
• 94 excellent service rating

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511

• Traffic and transit information with one call
• Launched December 2002
• Already doubled call volumes over 817-1717

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TransLink

• Successful technology test in 2002
• 90 customer satisfaction
• Poised for regional roll-out in late 2003

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www.transitinfo.org

• Convenient online trip planning
• All major transit systems by end of 2003
• Has served 2 million customers since Summer 2001

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For more information, contact

• Metropolitan Transportation Commission
• 101-8th St. Oakland, CA 94607
• Tel. [phone]
• Fax [phone]
• E-mail info_at_mtc.ca.gov
• Web www.mtc.ca.gov

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Metropolitan Transportation Commission