MEMORANDUM
TO:
MDTA Board
FROM:
Deputy Director of Finance Allen Garman
SUBJECT:
MDTA Board Resolution 25-02, Municipal Financing
DATE:
December 18, 2025
PURPOSE OF MEMORANDUM Explain the purpose of MDTA Board Resolution 25-02 for Municipal Financing and request approval for delegated authority. The resolution authorizes the issuance of toll revenue bonds to finance a portion of capital projects in calendar 2026. The resolution was reviewed at the December 4 Finance and Administration Committee meeting and recommended to proceed for full board for approval. SUMMARY The Municipal Financing Resolution authorizes a $600 million bond issuance to finance a portion of capital projects in calendar 2026. The financing is expected in the next four months 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 2025. Based on realized fiscal 2026 capital spending, more precise financing needs will be known in coming months. Resolution 25-02 amends Resolution 25-01 that was approved in April, extending the deadline to December 2026 from December 2025. With delegated authority granted in the prior resolution, management is currently working with bond counsel and Municipal Advisors on the Official Statement development and other elements of the financing process that comfortably requires 90-days to complete. The Executive Director and Chief Financial Officer (CFO) will have the authority to manage the bond sale and closing, including the award of the 2026 bonds to the successful underwriting firm(s) or negotiation of terms for a private placement. The resolution also provides for authority to select other service providers and to prepare and execute all closing documents, certificates, and bond forms.
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