Meeting_Body
FINANCE, BUDGET AND AUDIT COMMITTEE
JANUARY 15, 2026
Subject
SUBJECT: MEASURE M PROGRAM
Action
ACTION: AUTHORIZE MEASURE M SHORT-TERM BORROWING PROGRAM
Heading
RECOMMENDATION
Title
ADOPT a resolution that authorizes the Chief Executive Officer to:
A. ESTABLISH the Measure M Short-Term Borrowing Program (Attachment A); and
B. EXECUTE and deliver all necessary documents related to the Measure M Short-Term Borrowing Program to enter into revolving credit agreements (Attachment B).
(REQUIRES SEPARATE, SIMPLE MAJORITY VOTE OF THE BOARD)
Issue
ISSUE
Metro is focused on ensuring delivery of the transit capital and highway projects set forth in the Measure M Expenditure Plan. Large capital project costs and timing are subject to change and difficult to predict. The establishment of the Measure M short-term borrowing program will provide interim taxable or tax-exempt financing until grant reimbursement or other funding sources, including proceeds from Measure M bonds or TIFIA loans, are received.
Background
BACKGROUND
Metro's Long Range Transportation Plan assumes the use of short-term borrowing and long-term bonds to deliver Measure M capital projects. The proposed $500 million short-term borrowing program, which will include a combination of Commercial Paper ("CP") and revolving credit facilities, will provide flexible, low-cost financing to bridge gaps between future revenues and near-term expenses. Similar short-term borrowing programs have been utilized successfully for Prop A, Prop C and Measure R, and offer flexible, low-cost financing alternatives that support prudent and effective debt management. Without this program, Measure M projects could face potential delays until sufficient funds or bond proceeds are available. Historically, delays lead to higher labor costs and material price increases, resulting in unfavorable budget impacts.
CP is a short-term debt instrument that can be issued with maturities from 1 to 270 da...
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