Agenda - 02-07-2017 - 6-a - Minutes

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11 1 - More conservative financing cost than previously presented and significantly 2 higher than available today 3 - State participation at 10% 4 • Includes all of the elements from the Original Orange County Bus and Rail Investment 5 Plan 6 - GoTriangle's existing and expansion bus services and capital investments 7 - Local share of CHT and OPT's expansion bus services and capital investments 8 per the D-O Transit Plans, funded at a higher level than in the original D-O 9 Transit Plans 10 - North-South Corridor Bus Rapid Transit (N-S BRT) Project, managed by Chapel 11 Hill Transit 12 - D-O LRT Project 13 - Hillsborough Train Station 14 - NCCU Station 15 • Does not include: 16 - Durham-Wake Commuter Rail Project 17 18 Accounting for Uncertainties 19 • Significant contingency in D-O LRT capital cost 20 • Cash Reserves for Operating and State of Good Repair 21 • Sensitivity Analyses requires some additional local revenue or cost mitigation 22 - 10% capital cost increase for D-O LRT Project (similar to 0% state funding 23 share) 24 - Lower-than-expected sales tax revenues 25 - Higher than anticipated interest rates 26 • Working with local government partners and Funding and Community Collaborative to 27 develop plan to address sensitivity scenarios 28 - Financial Summit held 1-18-17 29 - Continuing work with Staff Working Group to update County Transit Plans — 30 update expected this Spring 31 32 The Original D-O LRT Project Cost has increased by 4% since 2011 D-O LRT Proposed 33 Budget. 34 35 Commissioner Price said GoTriangle has a new scenario that pushes financing out 36 three years. She asked if this will last over time. 37 Danny Rogers said it had to be pushed out so that financing would work. He said the 38 TIFIA (Transportation Innovative Finance Infrastructure Act) loan is a long-term loan that would 39 start after the project is complete, and would be paid off over time. He said the LOBs (Limited 40 Obligation Bonds) would be shorter term, and would happen while the project is under 41 construction, being paid off before the TIFIA loan begins. He said this allows the funds 42 identified for transit plans to be the funds that are used for transit plans. He said other 43 revenues would not have to be found. 44 Commissioner Price asked if the final cost of the project is known, since a loan is being 45 added and financing pushed out. 46 Danny Rogers said the cost is the same. He referred to a slide that overviewed the 47 finances. He said the TIFIA loan would be paid off in 2062. 48 Chair Dorosin asked if clarification could be given regarding the types of loans. 49 Danny Rogers said TIFIA is a federal program that has been around for many years for 50 major infrastructure projects. He said it allows for loans on very favorable terms.