Policy No..: MDTA 7009 Effective: August 16, 2005
ratio should approximate 400 days to support the highest possible credit ratings in conformance with Policy Statement 33. iv. Unrestricted cash shall include funds on deposit in the following MDTA trust accounts: Operating , Capital (cash funded), General, and the Maintenance and Operating (M&O) Reserve. f. Policy Statement 6. The Chief Financial Officer (CFO), under the direction of the Executive Director, has the responsibility to oversee and coordinate the sale and issuance of MDTA debt. i. The CFO shall make recommendations to the Executive Director and MDTA Board regarding necessary actions related thereto. ii. The CFO and Executive Director shall obtain MDTA Board approval thereof as evidenced by authorizing MDTA Board Resolutions. g. Policy Statement 7. The MDTA shall endeavor to finance a portion of the CTP on a “pay-as-you-go” basis. h. Policy Statement 8. Debt financings will be limited to capital projects included in the CTP. II. Limitations on Indebtedness a. Policy Statement 9. The statutory ceiling on the level of outstanding toll revenue bond debt shall not exceed $ 5 ,000,000,000 4 on June 30 of any year. b. Policy Statement 10. The amount of planned MDTA debt will be limited by affordability guidelines relating to debt service coverage, the rate covenant set forth below, and as further determined by the Executive Director and CFO in consultation with the municipal advisors. The amount of planned toll revenue-backed debt will be shown in the Financial Forecasts that are prepared at least twice per year. i. The 2007 Trust Agreement requires that in each Bond Year (July 1 – June 30, as defined in the Trust Agreement) net revenues (revenues less operating expenditures) must cover 120% of debt service requirements and 100% of the amount annually budgeted for deposit to the M&O Reserve Account. ii. The MDTA will maintain a minimum annual debt service coverage level of 200% of debt service for planning purposes. iii. The MDTA will allow at least $100 million in programmed bonding capacity in reserve for contingencies during Years 3 through 6 of the Financial Forecast planning period. iv. Planned debt issuances will be based on reasonable estimates of future toll adjustments and capital funding requirements. v. The period of planned debt issuances will coincide with the 6-year CTP, and may be done for additional (e.g., 10 years) for longer range strategic planning.
4 Effective July 1, 2026
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