Meeting_Body
FINANCE, BUDGET AND AUDIT COMMITTEE
MARCH 19, 2026
Subject
SUBJECT: PROPOSITION C BONDS
Action
ACTION: APPROVE RECOMMENDATION
Heading
RECOMMENDATION
Title
ADOPT a Resolution (Attachment A) that authorizes the issuance and negotiated sale of up to $450 million in aggregate principal amount of Proposition C Sales Tax Revenue Senior Bonds (the "Bonds"), in one or more series, to finance capital projects, refund the Proposition C Senior Sales Tax Revenue Refunding Bonds, Senior Bonds, Series 2016-A (the "Refunded Bonds"), 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 provides guidelines for new money financings that may be long-term or short-term. Proposition C new money bond issues are permitted to provide funding for eligible expenditures on capital projects. In addition, 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.
Background
BACKGROUND
Approval of the above recommendations will authorize the issuance of Bonds, with a par amount not to exceed $450 million of fixed rate bonds, which will fund or reimburse $350 million of LACMTA for Proposition C eligible capital projects and expenditures and refund $31 million of the outstanding callable Refunded Bonds on a current basis for debt service savings. The Refunded Bonds may be currently callable in April 2026 as their call date is July 1, 2026. Based on market conditions as of February 13, 2026, the refunding of the Refunded Bonds was estimated to provide $1.7 million (or 4.59%) in net present value savings, which is above the minimum 3% of the refunded par amount set forth in the Debt Policy criteria for evaluating refunding opportunities.
Discussion
DISCUSSION
The new money and refunding components of the bond iss...
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