Meeting_Body
MEASURE M INDEPENDENT TAXPAYER OVERSIGHT COMMITTEE
DECEMBER 3, 2025
Subject
SUBJECT: MEASURE M SHORT TERM BORROWING PROGRAM
Action
ACTION: APPROVE RECOMMENDATION
Heading
RECOMMENDATION
Title
ADOPT a resolution (Attachment A) which finds, in accordance with Section 8(h)(1)(C) of the Measure M Ordinance, that the benefits from acceleration of projects exceed the issuance and interest costs of the proposed debt financing.
Issue
ISSUE
The Measure M Ordinance requires the Measure M Independent Taxpayers Oversight Committee of LACMTA ("Measure M Oversight Committee") "review all proposed debt financings and make a finding as to whether the benefits of the proposed financing for accelerating project delivery, avoiding future cost escalation, and related factors exceed the issuance and interest costs".
Background
BACKGROUND
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 revenue bonds or TIFIA loans, are received.
The Long Range Transportation Plan assumes the use of short-term borrowing as well as long-term bonds to deliver Measure M capital projects. Short-term borrowing tools, such as Commercial Paper ("CP") and revolving credit facilities, have been utilized successfully across Metro's short-term borrowing programs for Prop A, Prop C and Measure R, and offer flexible, low-cost financing alternatives that support prudent and effective debt program management.
CP is a short-term debt instrument that can be issued for maturities from 1 to 270 days. Amounts borrowed typically remain outstanding longer than the maturity of the notes themselves; as notes mature, new notes...
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