MEMORANDUM
TO:
MDTA Board
FROM:
Deputy Director of Finance, Allen Garman
SUBJECT:
MDTA Board Resolution 25-01 – Municipal Financing
DATE:
April 24, 2025
PURPOSE OF MEMORANDUM This memorandum is to explain the purpose of and request approval from the MDTA Board of MDTA Board Resolution 25-01 – Municipal Financing. The Resolution authorizes the issuance of toll revenue bonds to finance a portion of capital projects in Fiscal Year (FY) 2026. Following a discussion at the April 10 Finance and Administration Committee meeting, the Resolution was recommended to move forward to the full MDTA Board for approval. SUMMARY The Municipal Financing Resolution authorizes the issuance of $600 million in bonds to finance capital projects for an approximately one-year period through FY 2026. The financing is expected before December 31, 2025, and will be sized to account for the capital program, net operating revenues, bond premium, debt service reserve funding, and costs of issuance. The $600 million limit contained in the Resolution is based on the most recent official forecast approved by the MDTA Board in November 2024. More precise financing needs will be known in the coming months based on realized FY 2025 capital spending and updated information incorporated in the Consolidated Transportation Program (CTP) for FY 2026. It is expected that an amended resolution will be required to update the financing limit, but the first resolution is currently needed as delegated authority to engage bond counsel in the development of the Official Statement and generally begin the financing process that comfortably requires 90-days to complete.
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