The San Francisco Municipal Transportation Agency will use the possibility of $61 million of revenue bonds to help quell funding concerns about its Central Subway project.
The SF Muni board passed a resolution Tuesday that will allow the agency to use $61 million of revenue bonds as a source of revenue in its 20-year capital plan in an effort to shore up finances for its downtown subway project.
The funding plan for the project — which would connect the city’s downtown shopping area and its Northeast neighborhoods — has included $61 million of high-speed rail bond proceeds since it would be considered a connecting line for the planned statewide high-speed system.
But the high-speed rail bond sale has run into political turmoil and has yet to be approved by the California Legislature.
In order to assure the Federal Transit Administration that other funds will be available for the project, the Muni board passed the bond resolution, according to a staff report. The FTA is poised to add $942 million to the $1.6 billion project.
The move by the board comes after its approval last month of up to $80 million of revenue bonds in 2012 for refunding and transit and parking garage projects.
The transit agency’s board has the authority to issue bonds with the approval of the city and county of San Francisco’s Board of Supervisors.