About Metro Proposition C Sales Tax Revenue Bonds
LACMTA issues sales tax revenue bonds to provide funds for the acquisition of revenue vehicles and construction of major capital projects. Sales tax revenue bonds are secured by the Los Angeles County voter-approved Proposition A, Proposition C, or Measure R sales taxes, net of administration costs and allocations to local governments. LACMTA issues sales tax revenue refunding bonds generally to reduce debt service costs by refinancing previously issued sales tax revenue bonds and/or commercial paper notes when more favorable interest rates or financing terms are available. Refunding may also be executed for reasons other than to achieve cost savings, such as to restructure the repayment schedule of the debt, to change the type of debt instruments being used, or to retire an indenture in order to remove undesirable covenants.Metro issues long-term debt primarily to finance a portion of the capital costs of the County transportation system. The majority of Metro’s long-term debt has been issued to fund the costs of the regional rail system, including right-of-way acquisitions and system construction costs, and is secured by Proposition A, Proposition C and Measure R sales taxes.
Metro has also issued long-term debt to finance vehicle purchases, to provide funding to the Alameda Corridor Transportation Authority’s rail corridor project, to construct the transit center and parking structure located at Union Station, to implement various highway improvement projects and to construct Metro’s headquarters building.
On behalf of the Los Angeles County Metropolitan Transportation Authority (Metro), I would like to welcome you to our new investor relations website. We appreciate your interest and investment in bonds issued by the Authority, as it allows us to make critical investments in public infrastructure throughout Los Angeles. We are committed to maintaining our strong bond ratings, and we are also committed to being as transparent as possible with the investor community and public at large.
I hope you find this website useful as you seek to better understand the credit fundamentals of Metro. Please do not hesitate to contact our office with suggestions for how we can be doing better. Thanks again for your interest in our bond program.