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Los Angeles County One Gateway P laz a z i3.

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Metropolitan T ransportation Auth ority Los Angeles, CA gooiz-z 95z metro.net
Metro
FINANCE, BUDGET 8 ~ AUDIT COMMIT T EE:
P UBLIC HEARING P ROP OSED FY15 BUDGET
May 14, 2014
SUBJECT : FISCAL YEAR 2015 (FY15) BUDGET
ACT ION: ADOP T T HE P ROP OSED FY15 BUDGET
RECOMMENDAT IONS
Adopt th e proposed FY15 Budget as presented in th e budget document (provided as a
separate transmittal) with th e f ollowing amendments totalling in a reduction of $97.8
million:
A. Auth oriz e th e CEO to amend th e FY15 Budget af ter completion of union contract
negotiations f or th e amount of wage and compensation increases as approved by th e
Board.
B. Furth er reduce As-Needed and Discretionary budgets f or travel, seminar, and oth er
miscellaneous accounts by 21.7%, or $4.0 million (Attach ment A), wh ich will not
negatively impact Measure R T ransit and High way proj ects, in order to continue to
ex ercise f iscal responsibility.
C. Add 44 positions, including one contract and 43 non-contract f ull-time eq uivalent
(FT E) positions (Attach ment B) f or delivering Measure R T ransit and High way P roj ect,
conducting Community Outreach , improving Def erred Maintenance, enh ancing Saf ety
and Security and f or oth er h igh priority programs.
D. Add $7.9 million f or th e FT E increase f rom Item C above. Ninety-th ree percent of th e
increase is f unded by designated f unding sources or savings f rom P rof essional and
Contract Services accounts and are not eligible f or Bus and Rail purposes. Net
impact to Bus and Rail eligible f unding is $540,000, wh ich represents a 0.04%
increase to th e Bus and Rail Operating budget (Attach ment C).
E. Approve a wage increase of 3% f or non-contract employees and th e corresponding
pay grade ranges f or a total of $3.9 million in FY15. T h e Bus and Rail Operations
eligible f unding portion of th e increase is $1.2 million, wh ich is 0.09% of th e Bus and
Rail Operating Budget. T h e req uest is comparable to oth er local agencies
(Attach ment D).
FISCAL YEAR 2015 (FY15) BUDGET P age 1
F. A d j u s t t he propos ed FY15 Bu d get cas h f l ow f or t he E x pos i t i on C on s t ru ct i on A u t hori t y
by red u ci n g $105.6 m i l l i on t o ref l ect t he May 1, 2014 ad opt i on by t he E x pos i t i on
C on s t ru ct i on A u t hori t y Board of i t s FY15 Bu d get w i t h n o chan ge t o t he approved L i f e
of P roj ect bu d get .
G. A pprove t he Rei m bu rs em en t Res ol u t i on d ecl ari n g L A C MTA 's i n t en t i on t o i s s u e d ebt
i n FY15 f or capi t al proj ect s . A ct u al d ebt i s s u an ce w i l l req u i re s eparat e Board approval
(A t t achm en t E ) .
ISSUE
St at e L aw req u i res t he ad opt i on of an an n u al bu d get t o m an age t he reven u es an d
ex pen s es of t he agen cy 's proj ect s an d program s . The bu d get i s t he l egal au t hori t y t o
obl i gat e an d s pen d f u n d s an d i m pl em en t s previ ou s Board pol i cy . It i n cl u d es al l operat i n g,
capi t al , d ebt s ervi ce req u i rem en t s , an d gen eral f u n d act i vi t i es f or t he f i s cal y ear. Bu d get
d et ai l i s a m an agem en t pl an f or f i n an ci al act i vi t y an d i s prepared at t he f u n d , proj ect ,
d epart m en t , an d ex pen s e/ ex pen d i t u re l evel . The l egal l evel of con t rol i s at t he f u n d l evel .
Tot al an n u al ex pen d i t u res can n ot ex ceed t he f i n al appropri at i on ad opt ed by t he Board
ex cept f or capi t al ex pen d i t u res t hat are au t hori z ed on al i f e- of - proj ect bas i s .
C opi es of t he propos ed bu d get d ocu m en t w ere m ad e avai l abl e t o t he pu bl i c on A pri l 29,
2014, bot h el ect ron i cal l y at w w w .m et ro.n et an d t hrou gh t he Record s Man agem en t
C en t er (RMC ) at RMC (a~m et ro.n et . P ri n t ed copi es of t he bu d get d ocu m en t w ere m ad e
avai l abl e at t he RMC on t he P l az a l evel of t he Gat ew ay Bu i l d i n g on t he s am e d ay . The
pu bl i c heari n g i s s ched u l ed f or May 14, 2014. A d van ce pu bl i c n ot i f i cat i on of t hi s heari n g
w as i s s u ed t hrou gh ad vert i s em en t s pos t ed i n m u l t i pl e n ew s pu bl i cat i on s .
FISC A L YE A R 2015 (FY15) BUDGE T P age 2
DISCUSSION
Since FY10, M et r o ' s t o t a l budget ha s incr ea s ed by 41 %fr o m $3.9 bil l io n t o t he pr o po s ed
$5.5 bil l io n in FY15, r efl ect ing $1.6 bil l io n gr o wt h, ma inl y due t o incr ea s ed ca pit a l
pr o gr a ms , fo r impr o v ing defer r ed ma int ena nce, incr ea s ing s a fet y a nd s ecur it y mea s ur es ,
a nd co ns t r uct ing M ea s ur e R T r a ns it a nd Highwa y.
FY10
T o t a l Budget : $3,9B
Subs idy Funding M et r o .
a ndDebfSer v ice Oper a t io ns
$1,397M (36 r o ~ $1,142M (31%u)
Ca pit a l
&~ Ag ncy
~ g7,108M t 29' h]
Ov er s ight ~ r `
$104h1(3%)
Gener a l Pl a nning, ' ?'
Pr o gr a ms
S34M (1~~~
Rr eewa y
Ser v ices
550M t 1 J o )
Gen Admin
& Agency
Ov er s ight
$61h1(1 %~
Gener a l Pl a nning" ,
Pr o gr a ms
S100M (2%}
Fr eewa y
Ser v ices
~ t S77M (1 I)
FY15*
T o t a l Budget : $5.5B
SUbs ict y fdl et r o
Fgnding a nd Qper a t io ns
Debt Ser v ice $1,377M (25 ,~ ~
$1,584M (29%)
= .CS: {l t .4:42
,Ca r t a l
$2,3091N f~ 2%}
Agencywide, no n-co nt r a ct po s it io ns ha v e decr ea s ed fr o m FY10 t o FY14 by 7 FT Es . T he
s ha r e o f t ho s e no n-co nt r a ct po s it io ns ha s s hift ed fr o m o per a t io ns a nd gener a l
a dminis t r a t io n t o ca pit a l a nd pl a nning.
T he pr o po s ed FY15 Budget is ba l a nced a t $5.5 bil l io n a nd inco r po r a t es numer o us co s t
co nt r o l mea s ur es , incl uding s ignifica nt r educt io ns in Bus a nd Ra il o v er t ime a nd
s ubs t a nt ia l r educt io ns in dis cr et io na r y a cco unt s .
T he pr o po s ed FY15 Budget co nt a ins M ea s ur e R-funded t r a ns it co ns t r uct io n pr o j ect s
t hr o ugho ut t he r egio n, incl uding: wo r k o n t he new Cr ens ha w/LAX l ine, co mpl et io n o f t he
Expo a nd Go l d Line ext ens io ns , a nd t he s t a r t o f ma j o r wo r k fo r t he Regio na l Co nnect o r
a nd t he Pur pl e Line ext ens io n. It fo cus es o n t he fo l l o wing a r ea s :
M ea s ur e R T r a ns it &Highwa y pr o j ect del iv er y;
Bus a nd Ra il s er v ice impr o v ement s ;
Co unt ywide t r a ns it funding a nd t r a ns po r t a t io n s t udies ;
Expr es s La ne t o l l o per a t io ns
Sys t emwide s a fet y a nd s ecur it y;
Defer r ed ma int ena nce pr o j ect s ;
Expl o r a t io n o f a ddit io na l Publ ic-Pr iv a t e Pa r t ner s hip (PPP) o ppo r t unit ies ; a nd,
New init ia t iv es , s uch a s t echno l o gy, bike pr o gr a m, a nd s igna ge impr o v ement s .
FISCAL YEAR 2015 (FY15) BUDGET Pa ge 3
While the proposed FY15 Budget is balanced due to extensive cost controls and cost-
cutting measures, Metro proj ects an operating def icit in two years of $37 million, which is
estimated to grow to $226 million by FY23. A f are restructuring proposal is being
presented to the Board which would help mitigate some of this proj ected shortf all.
Recommendation B Reduction in discretionary and as-needed budgets:
I n light of the looming budget def icit, the agency has re-evaluated discretionary and as-
needed budgets and is proposing additional reductions in these accounts in a manner
that will not af f ect the delivery of Measure R T ransit and Highway proj ects. As shown in
Attachment A, the recommended reduction of $4.0 million represents a 21.7% reduction
in these budget items.
Recommendation C Additional FT Es:
T he recommended amendment would add a total of 44 new FT Es in FY15, including one
contract and 43 non-contract positions. T en of the requested 44 FT Es will be converting
contracted f ield work in house in Community Relations f or T ransit and Highway
construction proj ects to more ef f ectively mitigate community issues prior to and during
the construction period. T wenty- three FT Es are requested to continue planned Measure
R T ransit and Highway proj ects. T he rest of the 11 FT Es will support ExpressLane
operations, Union S tation maintenance, technology strategic initiatives, and
saf ety/ security, and will exercise tighter control over Def erred Maintenance contract
administration and improve union labor benef it and arbitration processing.
T otal non-contract positions across the agency have decreased by seven FT Es f rom
FY10 to FY14. With the increased emphasis to improving Def erred Maintenance, S af ety
and S ecurity, and building Measure R T ransit and Highway P roj ects since FY10, each
non-contract FT E on the average carries 30% more budget, or additional scope of work,
in the FY15 proposed document. T he work assignment of the non-contract FT Es has
also shif ted f rom General Administration, Agency O versight, and Bus and Rail O perating
to Capital Maintenance and Construction. Comparing FY14 to FY10, 124 non-contract
FT Es were reallocated f rom the f ormer, while FT Es 117 were added to Capital P roj ects.
Recommendation D Budget f or the additional FT Es:
T he recommended FT Es will increase the budget by $7.9 million (Attachment C). $7.4
million, or 93%, of the position increase will be f unded with designated f unding sources,
such as Measure R, T oll revenues, S AFE Call Box, Union S tation revenues, or the
savings generated due to reductions in service contracts. O nly three FT Es will be f unded
by Bus and Rail eligible f unding sources f or a total of $540,000, which increases the Bus
and Rail O perating budget by only 0.04%.
Recommendation E Non-contract salaries:
S ince J uly 1, 2009, contract employees with signed collective bargaining agreements
have received cumulative wage increases totaling up to 8% via signing bonuses,
quarterly compensation adj ustments, and/ or other benef its/ settlements, whereas non-
contract employee salaries have been increased once by 2%. As shown in Attachment
D, the 2% salary increase provided to Metro non-contract personnel in J uly 2013 is below
comparable local agencies, several of which are considering or budgeting additional
salary increases in FY15. T he total cost f or an across-the- board 3% increase in non-
contract salaries would be $3.9 million, of which only $1.2 million would be Bus and Rail
FI S CAL YEAR 2015 (FY 15) BUDGET P age 4
e l i g i b l e , or 0.09% of the Bus and R ai l Ope rati ng b udg e t. Approval of thi s ac ti on w i l l al so
i nc re ase non-c ontrac t pay g rade rang e s b y 3%.
R e c omme ndati on F E x posi ti on C onstruc ti on Authori ty b udg e t:
Me tro funds the E x posi ti on C onstruc ti on Authori ty' s b udg e t. On May 1, 2014, the
E x posi ti on C onstruc ti on Authori ty Board approve d i ts FY15 Budg e t of $397.5 mi l l i on,
w hi c h re duc e d the ori g i nal FY15 c ash fl ow fore c ast i nc l ude d i n the propose d FY15
Budg e t b y $105.6 mi l l i on, as fol l ow s:
R e duc ti on of $34.5 mi l l i on from E x po Phase I ,
R e duc ti on of $117.5 mi l l i on from E x po Phase I I , and
Addi ti on of $46.4 mi l l i on to l i g ht rai l ve hi c l e purc hase s.
Thi s c ash fl ow fore c ast c hang e for the FY15 Budg e t doe s not c hang e the approve d L i fe
of Proj e c t b udg e t.
Pre parati on for the E x po L i ne and Gol d L i ne Ne w E x te nsi on Ope ni ng s
L ooki ng forw ard i n FY15, Me tro w i l l pre pare e x te nsi ons for addi ti onal re ve nue se rvi c e
al ong b oth the E x po L i ne and the Gol d L i ne . The se tw o ne w e x te nsi ons w i l l ope n for
re ve nue se rvi c e i n FY16 and w i l l add 18 trac k mi l e s to the Me tro R ai l syste m, w hi c h i s a
ne arl y 20% i nc re ase to the syste m' s e x i sti ng 87 trac k mi l e s. Addi ti onal l y, Me tro w i l l add
tw o ne w l i g ht- rai l ve hi c l e mai nte nanc e fac i l i ti e s al ong the se l i ne e x te nsi ons, i nc re asi ng
mai nte nanc e c apac i ty b y approx i mate l y 75%. Furthe r, Me tro i s i nc re asi ng i ts l i g ht- rai l
fl e e t b y 45%, w i th the addi ti on of 78 ne w l i g ht- rai l ve hi c l e s, w hi c h start arri vi ng four- pe r-
month i n J ul y 2015 and the te sti ng c ar b e i ng de l i ve re d i n the se c ond q uarte r of FY15.
I n orde r to c onduc t syste ms i nte g rati on and te sti ng i n advanc e of ful l ope rati ons of the se
ne w l i ne s, ve hi c l e s, and fac i l i ti e s, Me tro w i l l ne e d to si g ni fi c antl y i nc re ase pe rsonne l i n
Ope rati ons and support func ti ons b e g i nni ng i n e arl y FY15. Me tro staff w i l l re turn to the
Board i n the fol l ow i ng months w i th de tai l s on the anti c i pate d l ab or re sourc e s and othe r
e x pe ndi ture s i n orde r to e nsure a ti me l y and safe re ve nue ope rati on al ong b oth l i ne
e x te nsi ons.
DE TE R MI NATI ON OF SAFE TY I MPAC T
The propose d b udg e t c onti nue s to make safe ty a pri mary g oal and provi de s fundi ng for
ne w and ong oi ng safe ty prog rams throug hout the ag e nc y.
AL TE R NATI VE S C ONSI DE R E D
The re i s no al te rnati ve to adopti ng a b udg e t. State l aw re q ui re s that a b udg e t shal l b e
adopte d for c onti nue d ag e nc y ope rati ons.
FI NANC I AL I MPAC T
The propose d FY15 Budg e t (provi de d i n a se parate transmi ttal ) i s $5.5 b i l l i on. Afte r
fac tori ng i n the i mpac t of the propose d ame ndme nts, the FY15 Budg e t w oul d b e re duc e d
to $5.4 b i l l i on. The b udg e t i nc l ude s e x pe ndi ture s and appropri ate s the re sourc e s
ne c e ssary to fund the m. The propose d FY15 Budg e t, as ame nde d b y thi s re port,
FI SC AL YE AR 2015 (FY15) BUDGE T
Pag e 5
demonstrates M etro' s c ap ac i ty to meet c ap i tal and op erati ng ob l i g ati ons, whi c h i s a
requi rement nec essary i n order to rec ei v e sub si di es from the state and federal
g ov ernments and to admi ni ster reg i onal transp ortati on fundi ng to l oc al c i ti es and
M uni c i p al Op erators.
NEXT STEPS
Prov i de the b oard rep ort detai l i ng the request for addi ti onal l ab or and exp endi ture i tems
for sy stems i nteg rati on and testi ng for the M etro Exp o Li ne and Gol d Li ne extensi ons,
l i g ht- rai l v ehi c l e mai ntenanc e fac i l i ti es, and new l i g ht- rai l v ehi c l es.
Imp l ement and moni tor the FY15 b udg et, i denti fy areas for i mp rov ement, dev el op mul ti -
y earfi nanc i al forec asts and reg ul arl y up date the Board on the ag enc y ' s ong oi ng fi nanc i al
p erformanc e.
ATTACHM ENTS
A. FY15 As- Needed and D i sc reti onary Ac c ounts Rec ommended
Reduc ti ons
B. Prop osed FY15 Addi ti onal FTEs
C. Fundi ng Sourc es for the FTE Addi ti ons
D . Comp arab l e Loc al Ag enc y Sal ary Surv ey
E. Rei mb ursement Resol uti on of LACM TA for Fi sc al Year 2015
Prep ared b y : Luke H. K l i p p , Budg et Anal y st, Ext. 27412
M el i ssa Wang , D ep uty Exec uti v e Offi c er, Fi nanc e, Ext. 26024
FISCAL YEAR 2015 (FY 15) BUD GET
Pag e 6
N a l i n i Ahuja
Executi ve D i r ecto r , Fi n a e &Budget
FISCAL YEAR 2015 (FY15) BUD GET Pa ge 7
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ATTACHMENT A
FY15 As-Needed and D i sc r et i o nar y Ac c o unt s Rec o mmended Reduc t i o ns
.
D i sc r et i o nar y Ac c o unt s
BOARD OF D IRECTORS 264,219 - 264,219 0.0%
CHIEF EXECUTIVE OFFICE 1,592,701 (392,701) 1,200,000 -24.7%
COMMUNICATIONS 2,245,197 (745,197) 1,500,000 -33.2%
CONGESTION RED UCTION 1,038,000 - 1,038,000 0.0%
ENGINEERING AND CONSTRUCTION 726,570 (476,570) 250,000 -65.6%
FINANCE AND BUD GET 333,410 (183,410) 150,000 -55.0%
INFORMATION TECHNOLOGY 136,924 - 136,924 0.0%
OPERATIONS 1,303,782 - 1,303,782 0.0%
PLANNING AND D EVELOPMENT 835,206 (535,206) 300,000 -64.1%
VEND OR/CONTRACT MANAGEMENT 363,850 (113,850) 250,000 -31.3%
D i sc r et i o nar y Ac c o unt s Subt o t al 8,839,859 (2,446,934) 6,392,925 -27.7'
As-Needed Ac c o unt s
BOARD OF D IRECTORS 320,000 - 320,000 0.0%
CHIEF EXECUTIVE OFFICE 1,382,880 (382,880) 1,000,000 -27.7%
COMMUNICATIONS 2,691,897 (500,000) 2,191,897 -18.6%
CONGESTION RED UCTION 299,464 - 299,464 0.0%
ENGINEERING AND CONSTRUCTION 1,193,613 (193,613) 1,000,000 -16.2%
FINANCE AND BUD GET 661,460 - 661,460 0.0%
INFORMATION TECHNOLOGY 295,042 - 295,042 0.0%
OPERATIONS 662,105 - 662,105 0.0%
PLANNING AND D EVELOPMENT 1,777,222 (500,000) 1,277,222 -28.1%
VEND OR/CONTRACT MANAGEMENT 399,597 - 399,597 0.0'0
As-Needed Ac c o unt s Subt o t al 9,683,280 (1,576,493) 8,106,787 -16.3%
To t al 18,523,13$ (4,023,427) 14,499,712 -21.7 /
FISCAL YEAR 2015 (FY15) BUD GET Page 8
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1
1
ATTACHMENT E
REIMBURSEMENT RESOLUTION
OF THE
LOS ANGELES COUNTY METROPOLITAN TRANSPORTATION AUTHORITY
FOR FISCAL YEAR 2015
WHEREAS, the Los Angeles County Metr op oli ta n Tr a nsp or ta ti on Author i ty ( the "Metr o") d esi r es
a nd i ntend s to fi na nce cer ta i n costs r ela ti ng to ( i ) the d esi gn, engi neer i ng, constr ucti on, equi p a ge
a nd a cqui si ti on of li ght r a i l li nes i nclud i ng the Ex p osi ti on Li ne Pha se I or Pha se II Pr oj ect, the
Cr ensha w/LAX Tr a nsi t Cor r i d or Pr oj ect a nd Gold Li ne Foothi ll Ex tensi on Pr oj ect ( i i ) the d esi gn,
engi neer i ng, constr ucti on, equi p a ge a nd a cqui si ti ons for the Southwester n Ya r d ( i i i ) the d esi gn,
engi neer i ng, constr ucti on, equi p a ge a nd a cqui si ti ons for the Ra i l Defer r ed Ma i ntena nce Pr oj ect
( i v ) the d esi gn, engi neer i ng, constr ucti on, equi p a ge a nd a cqui si ti ons for the HOV La nes a nd
Ala med a Cor r i d or Ea st ( v ) the d esi gn, engi neer i ng, constr ucti on, equi p a ge a nd a cqui si ti on of
v a r i ous segments of the Metr o Red Li ne a nd Pur p le Li ne subwa ys, i nclud i ng the Westsi d e
Subwa y Ex tensi on Secti on 1 ( v i ) the d esi gn, engi neer i ng a nd constr ucti on of cer ta i n hi ghwa y,
buswa y a nd/or r ela ted p r oj ects ( v i i ) the engi neer i ng, constr ucti on a nd/or a cqui si ti on of v a r i ous
ca p i ta l fa ci li ti es a nd equi p ment, i nclud i ng buses a nd r a i l ca r s, r ela ted to ser v i ce op er a ti on a nd
( v i i i ) to other tr a nsi t r ela ted p r oj ects ( ea ch a "Pr oj ect" a nd collecti v ely, the "Pr oj ects");
WHEREAS, to the ex tent tha t fed er a l a nd/or sta te gr a nt fund i ng bud geted to be r ecei v ed d ur i ng
FY15 i s d ela yed or r ed uced , the Los Angeles County Metr op oli ta n Tr a nsp or ta ti on Author i ty
d esi r es a nd i ntend s to fi na nce cer ta i n costs r ela ti ng to the Pr oj ects.
WHEREAS, Metr o ex p ects to i ssue d ebt thr ough the i ssua nce of ta x-ex emp t bond i ssues to p a y
for these ex p end i tur es, whi ch bond i ssues wi ll ha v e two sep a r a te secur i ty sour ces, Pr op osi ti on A,
sa les ta x r ev enues a nd gr a nt r ev enues to fi na nce the costs of the Pr oj ects on a p er ma nent ba si s
( the "Debt");
WHEREAS, Metr o ex p ects to ex p end moneys of the Enter p r i se Fund ( other tha n moneys d er i v ed
fr om the i ssua nce of bond s) on ex p end i tur es r ela ti ng to the costs of the Pr oj ects p r i or to the
i ssua nce of the Debt, whi ch ex p end i tur es wi ll be p r op er ly cha r gea ble to a ca p i ta l a ccount und er
gener a l fed er a l i ncome ta x p r i nci p les;
WHEREAS, Metr o r ea sona bly ex p ects to r ei mbur se cer ta i n of such ca p i ta l ex p end i tur es wi th the
p r oceed s of the Debt;
WHEREAS, Metr o ex p ects tha t the a mount of Debt tha t wi ll be i ssued to p a y for the costs of the
Pr oj ects wi ll not ex ceed $100 mi lli on for Pr op osi ti on A a nd $98 mi lli on for gr a nt r ev enues;
WHEREAS, a t the ti me of ea ch r ei mbur sement, Metr o wi ll ev i d ence the r ei mbur sement i n wr i ti ng,
whi ch i d enti fi es the a lloca ti on of the p r oceed s of the Debt to Metr o, for the p ur p ose of
r ei mbur si ng Metr o for the ca p i ta l ex p end i tur es ma d e p r i or to the i ssua nce of the Debt;
WHEREAS, Metr o ex p ects to ma ke r ei mbur sement a lloca ti ons no la ter tha n ei ghteen ( 18)
months a fter the la ter of ( i ) the d a te on whi ch the ea r li est or i gi na l ex p end i tur e for the Pr oj ect i s
p a i d or ( i i ) the d a te on whi ch the Pr oj ect i s p la ced i n ser v i ce ( or a ba nd oned ), but i n no ev ent la ter
tha n thr ee ( 3) yea r s a fter the d a te on whi ch the ea r li est or i gi na l ex p end i tur e for the Pr oj ect i s
p a i d ;
FISCAL YEAR 2015 ( FY15) BUDGET
Pa ge 12
WHEREAS, Metro w i l l n ot, w i th i n on e (1) year of th e rei mbursemen t al l oc ati on , use th e proc eeds
of th e Debt rec ei v ed by w ay of a rei mbursemen t al l oc ati on i n a man n er th at w i l l resul t i n th e
c reati on of repl ac emen t proc eeds of th e Debt or an oth er i ssue (e. g . , Metro w i l l n ot pl edg e or use
th e proc eeds rec ei v ed as rei mbursemen t for th e paymen t of debt serv i c e on th e Debt or an oth er
i ssue, exc ept th at th e proc eeds of th e Debt c an be deposi ted i n a bon a fi de debt serv i c e fun d);
an d
WHEREAS, th i s Resol uti on i s i n ten ded to be a " dec l arati on of offi c i al i n ten t" i n ac c ordan c e w i th
Sec ti on 1. 150-2 of th e Treasury Reg ul ati on s.
NOW THEREFORE, BE I T RESOLVED, th at (i ) al l of th e foreg oi n g rec i tal s are true an d c orrec t
an d (i i ) i n ac c ordan c e w i th Sec ti on 1. 150-2 of th e Treasury Reg ul ati on s, Metro dec l ares i ts
i n ten ti on to i ssue Debt i n an amoun t n ot to exc eed $100 mi l l i on for P roposi ti on A an d $98 mi l l i on
for g ran t rev en ues; th e proc eeds of w h i c h w i l l be used to pay for th e c osts of th e P roj ec ts,
i n c l udi n g th e rei mbursemen t to Metro for c ertai n c api tal expen di tures rel ati n g to th e P roj ec ts
made pri or to th e i ssuan c e of th e Debt
FI SCAL YEAR 2015 (FY15) BUDGET
Page 13

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