Title
Ordinance Authorizing the Issuance of Obligations to Finance Public Transit Projects (Ordinance S-46255)
Description
Request an ordinance to authorize the City Manager to issue or, to cause the issuance of, obligations of or by the City, a municipal property corporation, a corporate trustee or a bank as short-term and/or long-term obligations and to issue long-term obligations to refund short-term obligations, including execution and delivery of all leases and other agreements necessary or appropriate for the financing of costs of maintaining and expanding public transportation options for the City of Phoenix and improving the City’s streets and roadways and associated financing costs; pledge, if deemed appropriate, excise taxes, voter approved transportation excise taxes or other lawfully available funds for such purposes and to pay financing costs; and authorizing the city controller to receive and expend all necessary funds therefor. The total amount of debt financing to be authorized under this ordinance is $1.3 billion and the debt service will be paid with T2050 revenues.
Report
Summary
The Public Transit capital program through 2030 is estimated to be $3.9 billion and includes projects to maintain the bus system in a state of good repair, light rail expansion, and projects that provide for additional transit services and amenities such as new technology, additional shade at bus stops and new Bus Rapid Transit service. The Public Transit capital program is planned to be funded by a mixture of T2050 sales tax revenues, federal grant funds, regional Proposition 400 funds, and proceeds from the issuance of debt. This ordinance requests authorization to fund up to $1.3 billion of the Public Transit capital program with debt financing. The proposed funding of the Public Transit capital program, as well as previously approved funding for the Streets capital program, is included in the long-term T2050 financial plan.
Financial Impact
The total amount of debt financing to be authorized under this ordinance is $1.3 billion and the debt service will be paid with T2050 revenues.
Concurrence/Previous Council Action
- The issuance of up to $1.3 billion in debt for Public Transit's capital program was recommended to City Council by the Citizens Transportation Commission on Nov. 21, 2019.
- This item was recommended for approval at the Transportation, Infrastructure and Innovation Subcommittee meeting on Dec. 4, 2019, by a vote of 4-0.
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua, and the Public Transit and Finance departments.