Los Angeles County Metropolitan Transportation Authority Los Angeles Regional Investors Conference, February 26-27, 2014 Nalini Ahuja‐Executive Director, Finance and Budget Donna R. Mills –Treasurer At a Glance Metro Operates the 3rd Largest Transportation System in the U.S. • Completely clean-air fleet of over 2,200 Compressed Natural Gas buses • 87 miles of Metro Rail – 83 stations • Approximately 1.1 million bus and 360,000 rail passengers each weekday • Metro Rapid Bus • 535 HOV lane miles • Service area of 1,433 square miles 1 At a Glance The Extensive Bus System • Service in L.A. County as well as portions of Orange and Ventura Counties • Second largest bus system in the U.S. • Nearly 360 million boardings in FY13 • Twenty-five Metro Rapid corridors – Over 400 miles of express routes throughout the County – Buses have traffic signal priority and fewer stops to speed transit • The Metro Orange Line – 18-mile Bus Rapid Transit service that operates along an exclusive right-of way – Transports thousands of commuters between Warner Center in the west San Fernando Valley and the Chatsworth Amtrak/Metrolink Station to the North and the Metro Red Line subway station in North Hollywood • The Metro Silver Line – Express Bus service stretching over 26 miles from El Monte Station to Harbor Gateway Transit Center 2 At a Glance The Rail System Currently Consists of Six Rail Lines • Four light rail lines – Blue, Green, Gold, and Exposition serving 67 stations along 70.3 miles of track. • Two subway lines – Red and Purple, serving 16 stations along 17.4 miles of track. • Projects under construction – Expo 2 to Santa Monica – Gold Line Foothill Extension – Crenshaw/LAX Transit Corridor – Regional Connector – Westside Subway Extension Phase One 3 At a Glance The Rail System Currently Consists of Six Rail Lines 4 At a Glance Other Major Transportation Projects Across the County • Highway System Improvements – Freeway construction improvements- interchanges, widening and sound walls. – High Occupancy Vehicle (HOV) lane program, in cooperation with Caltrans, funded through a combination of federal, State and local resources. – Metro ExpressLanes, a pilot program on I-10 and I-110 overseen by Metro, Caltrans and several other mobility partners to convert HOV lanes to High Occupancy Toll (HOT) lanes. – Accelerated Regional Transportation Improvements (ARTI) P3 Project. • Metrolink Commuter Rail Line Fund Assistance – Funding partner with four other participating counties – Seven lines, totaling 512 miles and 55 stations. – Service to Riverside, Ventura, Orange, San Bernardino and San Diego counties. • Other Metro Funded Projects – Freeway service patrols – Over 100 local return and non-profit agencies providing community based transportation. 5 At a Glance Metro’s Public Support Proposition A • ½ cent sales tax approved by voters in November 1980 with no sunset • Since inception, Proposition A has provided more than $14.4 billion for transportation funding1 Proposition C • ½ cent sales tax approved by voters in November 1990 with no sunset • Since inception, Proposition C has provided more than $11.7 billion for transportation funding1 Measure R • ½ cent sales tax approved by voters in November 2008 with 2/3 majority • 30-year sales tax expiring in 2039 • Commits a projected $34.5 billion to traffic relief and transportation upgrades 1Through FY2013 –Sales tax revenues less administrative fees paid to the State Board of Equalization 6 At a Glance Proposition A Sales Tax Revenues $800.0 $700.0 $600.0 $500.0 $400.0 $300.0 $200.0 $100.0 $‐ 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 *Proposition C and Measure R Revenues are historically similar to Proposition A Revenues 7 LOOKING FORWARD Long Range Planning 2009 Long Range Transportation Plan May 2013 Update Summary of Sources Measure R $ 34.6 B 14.3% Federal $ 34.5 B Local 14.3% $ 135.1 B 55.9% State $ 37.3 B 15.5% $241.5 Billion Total FY 2013 – FY 2040 9 Measure R 2008 Voters Approved Allocation of Measure R Revenues • Half-cent tax on all taxable sales throughout Los Angeles Rail Operations Metro Rail Capital County 5% 2% Local Return • Taxes are allocated to be spent on specific project needs 15% Rail and/or Bus and operational purposes as set forth on the right Metrolink Capital 3% 35% • Bondholders benefit from a pledge of 85% of all Sales Tax Collections Bus Operations 20% Highway Capital 20% 10 Measure R Ten Largest Transit and Highway Projects Estimated Cost Opening Project (in $Millions) Year Exposition Blvd. LRT Phase II $1,511 FY 2017 Gold Line Foothill LRT Extension 786 FY 2017 Crenshaw/LAX Transit Corridor 2,058 FY 2020 Regional Connector 1,399 FY 2021 Westside Subway Extension – Segment 1 2,861 FY 2023 Largest Transit Projects Subtotal $8,615 I-405 North Carpool Lanes from I-10 to US-101 $1,149 FY 2014 I-5 North Carpool Lanes from State Route 170 to State Route 134 608 FY 2016 I-5 South from Orange County Line to I-605 (includes Carmenita Interchange) 1,894 FY 2017 I-10 Carpool Lanes from I-605 to State Route 57 578 FY 2018 Alameda Corridor East 1,446 FY 2012+ Largest Highway Projects Subtotal $5,675 GRAND TOTAL $14,290 (As of May 2013) 11 Measure R Transit Capital Plan 12 Measure R Highway Plans 13 Long Range Planning Metro Continues to Issue and Seek New Funding • New capital projects will be funded through Measure R subject to the Long Range Transportation Plan • Metro continues to seek alternative funding sources for various projects – Secured a $545.9 million TIFIA loan for the Crenshaw/LAX transit corridor – In final negotiations for $160 million TIFIA loan for Regional Connector project plus FFGA – Application in progress for $856 million Phase One of Westside Subway Extension • Metro issued $320 million of Proposition C new money bonds in calendar 2013, for two to three years of capital funding for highways. 14 CREDIT AND DEBT CHARACTERISTICS Metro Credit Debt Policy Guides Future Debt Issuance Measure R Debt Affordability Targets and Policy Limits Category Allowable Uses & Status Debt Policy Maximum 87% of MR Transit Capital – Transit Capital 35% – New Rail New Rail and/or Bus Rapid Transit. Initial issuance occurred in New Rail and/ or Bus Rapid CY2010. and/or Bus Rapid Transit Transit revenues. Transit Capital 3% – Metrolink Capital Operations, Maintenance and Expansion for system improvements, 87% of MR Transit Capital – Improvement Projects Within LA rail yards and rail cars. Currently no debt service. Issuance likely in Metrolink Capital County the future. Improvements in LA County. Transit Capital 2% – Metro Rail System improvements, rail yards and rail cars. Initial issuance 87% of MR Transit Capital – Capital 87% of MR Transit Capital occurred in CY2010. Metro Rail Capital Carpool lanes, highways, goods movement, grade separations and Highway Capital 20% – 60% of MR Highway Capital soundwalls. Currently no debt service. Issuance likely in the future. Rail operations for new transit project operations and maintenance. Operations 5% – Rail Operations No debt issuance. Currently no debt service. No debt issuance permitted. Bus operations for countywide bus service and maintenance. Operations 20% – Bus Operations No debt issuance. Currently no debt service. No debt issuance permitted. Major street resurfacing, rehabilitation and reconstruction; pothole repair; left turn signals; bikeways, pedestrian improvements; Local Return 15% – N/A streetscapes; signal synchronization; and transit. Distributed to localities based on population. 16 Metro Credit Sales Tax Bonds – Security Features Prop A Prop C Measure R Payments secured by Payments secured by Payments secured by Trust Structure Trust Agreement/ Trust Agreement/ Trust Agreement/ Trustee intercept Trustee intercept Trustee intercept ½ cent sales tax ½ cent sales tax ½ cent sales tax approved 1980 (no approved 1990 (no approved 2008 (30 sunset) sunset) year sunset) Funding Source Approx. 75% (excludes Approx. 80% (excludes Approx. 85% (excludes 25% Local Jurisdiction 20% Local Jurisdiction 15% Local Jurisdiction and administrative and administrative and administrative fees) fees) fees) • First Tier Senior • Senior Bonds • Senior Bonds Bonds • Subordinate Bonds, • Subordinate Flow of Funds • Subordinate Bonds, Notes or Other Bonds, Notes or Notes or Other Obligations Other Obligations Obligations • TIFIA Loans 17 Metro Credit Outstanding Debt and Ratings Credit Outstanding Par Rating (Moody’s/S&P/Fitch) Prop A – 1st Tier Senior Bonds $1,249,900,000 Aa2/AAA/NR Prop A – 2nd Tier Senior Bonds 20,520,000 Aa3/AA-/NR Prop C – Senior Bonds 1,316,285,000 Aa3/AA+/AA Measure R – Senior Bonds 701,935,000 Aa2/AAA/NR General Revenue Bonds 148,685,000 A1/A/NR Prop A Commercial Paper 119,020,000 P-1/A-1 (Sumitomo/Union LOCs) Prop C Commercial Paper 21,594,000 P-1/A-1 (State Street LOC) Prop C Revolving Credit Facility 45,000,000 NR Outstanding Debt $3,622,939,000 18 Metro Credit Proposition A Sales Tax Coverage History (in $Millions) Metro Maintains Net Sales Tax Allocation to Local Pledged Senior Lien Year Revenue Governments Revenues Coverage 2007 $686.2 (171.5) $514.6 3.60x Strong Coverage 2008 683.4 (170.8) 512.5 3.47x 2009 620.8 (155.2) 465.6 3.03x • Historically, Metro has maintained 2010 565.7 (141.4) 424.3 2.71x strong coverage on its long term debt 2011 601.9 (150.5) 451.4 3.00x 2012 648.7 (162.2) 486.5 3.04x supported by Proposition A and 2013 687.2 (171.8) 515.4 3.39x Proposition C Proposition C Sales Tax Coverage History (in $Millions) • A portion of the sales tax collected per Net Sales Tax Allocation to Local Pledged Senior Lien Year Revenue Governments Revenues Coverage proposition is used for local agencies, 2007 $686.3 (137.3) $549.0 5.86x the remainder is pledged to pay the 2008 683.5 (136.7) 546.8 5.31x 2009 620.9 (124.2) 496.7 4.22x Sales Tax Revenue bonds.