Guidebook for Effective Policies and Practices for Managing Surface Transportation Debt (2022) / Chapter Skim
Currently Skimming:
Pages 93-102
The Chapter Skim interface presents what we've algorithmically identified as the most significant single chunk of text within every page in the chapter.
Select key terms on the right to highlight them within pages of the chapter.
From page 93... ...
B-1 This appendix summarizes major debt types and debt-financing vehicles. It is not intended to be comprehensive of all types of debt and debt-financing mechanisms available to issuers.
|
From page 94... ...
ADMINISTRATION DEFINITION OBJECTIVES ELIGIBILITY REQUIREMENTS CANDIDATE PROJECTS MAIN ADVANTAGES MAIN DISADVANTAGES Administered and managed by state or local agencies An unlimited tax GO bond is typically a security backed by the fullfaith and credit revenue pledge and total taxing power of the local government. The GO revenue pledge means the local government promises to do everything it can to meet debt service1 GO bonds are essential financing instruments for taxsupported capital projects Must be issued by a government entity with tax revenues to pledge Capital projects of any size delivered and financed by a government Tax-exempt High credit quality resulting in low borrowing costs Economic limit on the level of taxation that a tax base can bear Government's mandate to provide essential public services and pay retiree pensions may also have strong claims on revenue and taxing power The unconditional and open-ended nature of the GO revenue pledge typically means a local government legally commits all its revenueproducing powers to meet debt service1 Moody's https://www.moodys.com/ Part I
|
From page 95... ...
ADMINISTRATION DEFINITION OBJECTIVES ELIGIBILITY REQUIREMENTS CANDIDATE PROJECTS MAIN ADVANTAGES MAIN DISADVANTAGES States and transportation agencies are responsible for managing toll revenue-backed bonds Toll revenuebacked bonds are issued to finance the construction of highways, bridges, and tunnels, and toll revenues generated from the toll facilities are used to cover debt service Toll revenuebacked bonds allow states and transportation agencies to issue debt for large capital projects with assurance that there is a dedicated revenue stream to cover debt service Eligibility requirements are set on a case-by-case basis, by: State constitution Statute State and local regulations Bond resolution Surface transportation construction projects, mainly toll highways Dedicated revenue stream for debt service Develop a revenue stream for future projects Need to identify consistent revenue stream Can be lower credit rating and thus higher debt cost Toll Revenue-Backed Bonds Tax-Supported Debt ADMINISTRATION DEFINITION OBJECTIVES ELIGIBILITY REQUIREMENTS CANDIDATE PROJECTS MAIN ADVANTAGES MAIN DISADVANTAGES States, municipalities, and authorities individually manage taxsupported debt Tax-supported debt is debt that is secured by dedicated taxes, such as motor fuel taxes, or other operating funds available to the issuing agency Tax-supported debt is intended to support a range of project and programmatic needs, with the assurance of a dedicated revenue stream Eligibility requirements are set by: State constitution Statute State and local regulations Voter referenda (in certain instances) Bond resolution Transportation programs Transportation projects or a set of projects Debt is issued with a dedicated revenue source pledged to bond holders Agencies might not raise the projected or required revenues to meet revenue pledges and fund transportation needs.
|
From page 96... ...
ADMINISTRATION DEFINITION OBJECTIVES ELIGIBILITY REQUIREMENTS CANDIDATE PROJECTS MAIN ADVANTAGES MAIN DISADVANTAGES FHWA oversees GARVEEs, issuing guidance and/or rules GARVEEs may be issued by States and State subsidiaries, including cities, counties and other public authorities "A debt-financing instrument (commonly a bond) authorized to receive federal reimbursement of debt service and related financing costs "1 GARVEEs are designed to provide the flexibility to make more shortterm investments in infrastructure projects without the upfront capital cost.
|
From page 97... ...
ADMINISTRATION DEFINITION OBJECTIVES ELIGIBILITY REQUIREMENTS CANDIDATE PROJECTS MAIN ADVANTAGES MAIN DISADVANTAGES Management and oversight provided by transportation agencies and private entities. USDOT has provided some guidance.
|
From page 98... ...
ADMINISTRATION DEFINITION OBJECTIVES ELIGIBILITY REQUIREMENTS CANDIDATE PROJECTS MAIN ADVANTAGES MAIN DISADVANTAGES FHWA allocates federal funds, assists with set-up and oversight, issues rules and/or guidance for funding eligibility States manage SIBs and decide which projects win funding States may also fund SIBs themselves with state funds State enabling legislation may be required SIBs are State revolving funds supported by federal or state monies that seed local public and private transportation projects. SIBs might provide credit assistance (e.g., loans)
|
From page 99... ...
ADMINISTRATION DEFINITION OBJECTIVES ELIGIBILITY REQUIREMENTS CANDIDATE PROJECTS MAIN ADVANTAGES MAIN DISADVANTAGES BAB provides management and oversight of TIFIA program TIFIA is a federal credit program that supports transportation projects that are deemed to be of national or regional significance TIFIA is intended to support projects across the U.S. that provide public benefit and stimulate capital market investment, ranging from transit-oriented development projects to rural infrastructure projects Minimum anticipated project costs must be at least $10 million for transit-oriented development, local, and rural projects Statutory credit assistance limit of 49% (but policy limits participation to 33%, except for rural projects)
|
From page 101... ...
Abbreviations and acronyms used without denitions in TRB publications: A4A Airlines for America AAAE American Association of Airport Executives AASHO American Association of State Highway Officials AASHTO American Association of State Highway and Transportation Officials ACI–NA Airports Council International–North America ACRP Airport Cooperative Research Program ADA Americans with Disabilities Act APTA American Public Transportation Association ASCE American Society of Civil Engineers ASME American Society of Mechanical Engineers ASTM American Society for Testing and Materials ATA American Trucking Associations CTAA Community Transportation Association of America CTBSSP Commercial Truck and Bus Safety Synthesis Program DHS Department of Homeland Security DOE Department of Energy EPA Environmental Protection Agency FAA Federal Aviation Administration FAST Fixing America's Surface Transportation Act (2015) FHWA Federal Highway Administration FMCSA Federal Motor Carrier Safety Administration FRA Federal Railroad Administration FTA Federal Transit Administration GHSA Governors Highway Safety Association HMCRP Hazardous Materials Cooperative Research Program IEEE Institute of Electrical and Electronics Engineers ISTEA Intermodal Surface Transportation Efficiency Act of 1991 ITE Institute of Transportation Engineers MAP-21 Moving Ahead for Progress in the 21st Century Act (2012)
|
From page 102... ...
Transportation Research Board 500 Fifth Street, NW Washington, DC 20001 ADDRESS SERVICE REQUESTED ISBN 978-0-309-68681-5 9 7 8 0 3 0 9 6 8 6 8 1 5 9 0 0 0 0
|
Key Terms
This material may be derived from roughly machine-read images, and so is provided only to facilitate research.
More
information on Chapter Skim is available.