DALLAS - The Regional Transportation Authority of Pima County, Ariz., plans to issue $150 million of bonds June 11 for a variety of road projects in the Tucson area.
The RTA board authorized the issue at its May 22 meeting.
"The $150 million will allow the RTA and its member jurisdictions to continue with construction in order to keep pace with the RTA plan schedule," RTA executive director Farhad Moghimi said in a prepared statement. "Construction bids, fortunately, have remained very competitive. This is an opportune time, with the low interest rate market, to continue to invest in our transportation infrastructure which, in turn, benefits our local economy."
The June issue will be the second round of bonds issued by the RTA.
The first were issued in 2011, when the RTA approved $150 million to help complete several projects, including a streetcar and several road projects.
The upcoming bonds, which reach final maturity June 30, 2026, earned an upgrade by Standard & Poor's to AA-plus from AA on May 15 based on stronger revenues.
"The raised rating is based on our view of recent growth in pledged revenues,
accompanied by a robust economic recovery," said Standard & Poor's credit analyst Sarah Sullivant.
Fitch Ratings affirmed its AA rating on May 16. Outlooks from both agencies are stable.
The authority was formed in 2004 to develop a 20-year Regional Transportation Plan for Pima County. The voter-approved plan includes 51 roadway, safety, environmental and economic vitality and transit elements. Roadway improvements account for 35 projects at an estimated $1.2 billion, followed by eight transit projects at $534 million.
Voters approved a county-wide transportation excise tax for 20 years beginning July 1, 2006 and ending June 30, 2026 to fund the RTP.
The voter-approved half-cent tax is assessed county-wide, collected by the Arizona Department of Revenue and deposited on a monthly basis into the bond account of the Pima County Regional Transportation Fund held by the depository on behalf of the authority. Remaining tax revenues are deposited in the construction account to pay for approved project costs.
