Meeting_Body
FINANCE, BUDGET AND AUDIT COMMITTEE
MARCH 19, 2026
Subject
SUBJECT: MEASURE R BONDS
Action
ACTION: APPROVE RECOMMENDATION
Heading
RECOMMENDATION
Title
ADOPT a Resolution (Attachment A) that authorizes the issuance and negotiated sale of up to $980 million in aggregate principal amount of Measure R Sales Tax Revenue Senior Bonds (the "Bonds"), in one or more series, to refund the Measure R Senior Sales Tax Revenue Bonds, Series 2016-A (the "Refunded Bonds"), finance capital projects, reimburse LACMTA for the development and construction of certain projects, refund outstanding Measure R Commercial Paper Notes, and to take of all other actions necessary in connection with the issuance of the Bonds.
(REQUIRES SEPARATE, SIMPLE MAJORITY VOTE OF THE BOARD)
Issue
ISSUE
The Debt Policy requires Metro to continuously review its outstanding obligations for economic, cost-effective opportunities, or other "non-economic" reasons to issue refunding obligations. In addition, the Debt Policy provides guidelines for new money financings that may be long-term or short-term. Measure R new money bond issues are permitted to provide funding for eligible expenditures on capital projects.
Background
BACKGROUND
Approval of the above recommendations will authorize the issuance of the Bonds, with a par amount not-to-exceed $980 million of fixed-rate bonds, which will refund $366 million of the outstanding callable Refunded Bonds on a current basis for debt service savings, fund $435 million of LACMTA Measure R eligible capital projects and expenditures and refund $150 million in outstanding Commercial Paper. The Refunded Bonds may be currently callable in April 2026 as their call date is June 1, 2026. Based on market conditions as of February 17, 2026, the refunding of the Refunded Bonds was estimated to provide $42.3 million (or 10.96%) in net present value savings, which is above the minimum 3% of the refunded par amount set forth in the Debt Policy cri...
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