Connecticut’s bond commission will consider two transactions totaling $1.47 billion at a meeting on Wednesday. Also on the commission’s agenda are allocations for projects totaling $1.08 billion. The allocations allow state and local government agencies to begin contracting and spending on projects that would later be financed with bond proceeds.
The largest transaction to be considered will be a $950 million special tax obligation deal that includes $600 million of new money and up to $350 million of refunding. The state issues special tax obligation bonds — secured by transportation-related taxes and fees — for transportation projects. Pending approval, the deal is expected to price before the end of 2010.
The second-largest transaction on the agenda is a $520 million general obligation deal, which is roughly half the state’s expected borrowing for fiscal 2011.
Gov. M. Jodi Rell last week touted one of the proposed allocations — $226 million to purchase 80 commuter rail cars for Metro North’s New Haven Line — as “one of the most important investments Connecticut has made in its transportation system in decades.” Those cars will be added to a fleet of 300 new cars on order known as M-8 rail cars. The state plans to finance the additional cars and spare parts and maintenance equipment using special tax obligation bonds.
