New York’s Metropolitan Transportation Authority wants ideas on how to create a new credit with revenue streams enacted in last year’s state bailout, according to its
The RFP, which includes a request for swap counterparties, was released Friday. Responses to the MTA, which operates the largest mass transit system in North America, are due by June 30.
The centerpiece of the financial rescue package enacted last year has not performed as well as expected. A payroll tax in the 12 counties served by the MTA was originally expected to generate $1.54 billion in 2010, but is now projected to come up $350 million short.
Last month, the agency reported year-to-date revenue from the tax, known as the payroll mobility tax, was $672.8 million, $224.6 million less than the adopted budget. Other revenue in the bailout — a menu of motor-vehicle-related fees — came in at $131.6 million, $21.2 million below adopted budget projections.
MTA had anticipated the payroll mobility tax would be used to establish a new credit, adding it to the authority’s four existing credits. The agency held off, however, until the revenue stream’s coverage was better established.
Officials plan to issue $2.33 billion of bonds in the remainder of 2010, and $1.61 billion, $2.25 billion, and $2.54 billion in the following three years, the RFP says.
The document also asks respondents for their thoughts on securitizing existing revenue streams in ways that will not require legislation, their views on retail order periods and designation policies, recommendations for accessing Federal transportation loan and grant programs, and ideas for innovative variable-rate debt structures.
In April, the MTA submitted a revised $26.27 billion, five-year capital program using $6 billion of bonds. The plan, which has a $9.91 billion funding gap, was automatically approved on June 1 when a state oversight board allowed a deadline to pass without taking action.
