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<br /> • Due to the timing of the receipt of Federal, State, and Local revenues, the Plan of
<br /> Finance includes the following potential / planned short term borrowings for DO LRT
<br /> construction costs:
<br /> o Limited Obligation Bonds ("LOBs") —In Anticipation of Local Revenues:2024
<br /> LOBs:$30,000,000
<br /> ➢ 2024 LOBs: $90,000,000
<br /> ➢ 2026 LOBs: $60,000,000
<br /> ➢ 2026 LOBs: $29,000,000
<br /> ➢ 2027 LOBs: $10,000,000
<br /> ➢ Subtotal: $219,000,000
<br /> o Grant Anticipation Notes ("GANs") —In Anticipation of Federal and State Funding:
<br /> • 2025 GANs: $275,000,000
<br /> ➢ 2027 GANs: $60,000,000
<br /> ➢ Subtotal: $335,000,000
<br /> o Grand Total LOBs / GANs issued:$554,000,0001
<br /> o The total financing cost and interest associated with the LOBs and GANs is
<br /> estimated to be $642,960,026.
<br /> • In addition to the short term borrowings, a $430,000,000 Transportation Infrastructure
<br /> Finance and Innovation Act ("TIFIA") is under consideration. It is expected that the
<br /> TIFIA loan will be approved in FY 2020 with an initial draw in FY 2023.
<br /> o The total financing cost and interest associated with the TIFIA loan is estimated to
<br /> be $1,253,991,989.
<br /> • The current model identifies the need for future funding for ongoing capital repair and
<br /> maintenance costs (State of Good Repair) which are funded in part through future
<br /> LOBs currently scheduled for 2040, 2048, 2053, and 2058.
<br /> o In the aggregate, future State of Good Repair borrowings have a par amount of
<br /> $44,000,000 and a total financing cost of$47,916,026.
<br /> o In the current Scenario 3 v9 C, all of these borrowings would be associated with
<br /> Orange County expenditures.
<br /> Commissioner McKee referred to the interest, and said the information shows $1.2
<br /> billion interest and financing costs for TIFIA; $642,960,000 for the LOBs and the GANs; and
<br /> $47,916,000 for the state of good repair. He said this is an approximate $1.942 billion in
<br /> interest and fees paid on a $1.4 billion project.
<br /> Ted Cole said the $642 million of total pay back is for principle plus interest, and the
<br /> same is for the other numbers.
<br /> Commissioner McKee said then his figures are wrong.
<br /> Commissioner Marcoplos asked if the collateral on the borrowings for the state of the
<br /> good repair would be the system itself.
<br /> Ted Cole said GoTriangle is expected to issue all of these borrowings through
<br /> generically and installment financing, secured by the assets that are being built or bought.
<br /> Commissioner Marcoplos said the loan goes through GoTriangle, and asked what
<br /> would happen to Orange County's credit if there is a default on the loan.
<br /> Ted Cole said what is the credit that will ultimately be developed and used to issue this
<br /> debt. He said Go Triangle will be the issuer of all debt, and all is expected to be secured by
<br /> the system. He said, at this point, there is no expectation of an explicit support agreement by
<br /> the counties; however, in his opinion, it is some time before this will be known definitively. He
<br /> said one of GoTriangle's next steps is to embark upon a more detailed discussion with the
<br /> rating agencies, which will go a long way to shaping that credit. He said some of that will be
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