DALLAS — Arizona's Regional Public Transportation Authority plans to price $115 million of transportation excise tax revenue bonds Jan. 14 to fund light rail expansion in the Phoenix metro area.
The bonds will price through negotiation with Barclays Capital as book runner and RBC Capital Markets as financial advisor.
Standard & Poor's rates the debt AA-plus, while Fitch Ratings provides its AA rating. Outlooks are stable. The ratings also apply to $87 million of 2009 debt.
"The authority maintains healthy debt service coverage levels despite significant declines in the aftermath of the recession and collapse of the residential housing market," Fitch analyst Rebecca Meyer said. "While revenues returned to solid growth in fiscal 2011, above average volatility represents an ongoing risk."
Regional transit agency Metro Rail opened the first 20 miles of light rail in December 2008. Six light rail extensions are planned or under construction that will create a 57-mile system by 2032, according to plans.
The parent agency Valley Metro also provides bus service, commuter vanpools, online carpool matching, bus trip mapping, bicycle safety and telework assistance. Two separate boards of directors head the traditional bus system and the light rail operation.
In November 2004, Maricopa County voters approved Proposition 400 authorizing a 20-year extension of a half-cent transportation excise tax, originally approved by voters in 1985 through the passage of Proposition 300. Proposition 400 provides the major funding source for a 20-year regional transportation plan developed by the Maricopa Association of Governments, which is the designated metropolitan planning organization for transportation in the region.
On Nov. 26, Valley Metro received a finding of "no significant impact" from the Federal Transit Administration for the 1.9-mile Gilbert Road light rail extension. The environmental approval was a prerequisite for continuing to receive federal funds for the project.
"As we continue to build our Valley's total transit network, the Gilbert Road extension helps satisfy the growing demand for transit service in the East Valley," said Steve Banta, Valley Metro CEO. "With this approval, we can begin the important next steps of advancing into the design phase."
