FY 2013 Operating and Capital Budget - Metro Transit

million of the Series 2005A Bonds to a rate of 3.95% for a 38-month period ending October 1,
2009. On October 1, 2009, the $100 million Series 2005 thus converted were remarketed as
weekly Variable Rate Demand Notes. The Series 2005 Bonds were refunded with the Series
2010 Bonds (see below).
Series 2007
In December 2007, Metro issued $20.82 million in Mass Transit Sales Tax Appropriation
Refunding Bonds (Series 2007) to advance refund the 2009 and 2010 principal payments of
the Series 2002B Bonds, totaling $18.1 million. A Debt Service Reserve in the amount of
$2.08 million was established at the time of the bond sale. The net proceeds of $18.49 million
were deposited in an irrevocable trust with an escrow agent to provide for the payment of
principal and interest of the aforementioned Series 2002B bonds. The Series 2007 Bonds are
expected to be paid from the revenues received by St. Louis County and the City of St. Louis
from a one-quarter cent mass transit sales tax annually appropriated for such purposes. The
bonds bear interest at rates of 5.00 percent to 5.25 percent and mature in fiscal year 2034.
As a result of the refunding, Metro increased its total debt service requirements by $29.31
million, which resulted in an economic loss of $3.21 million. As of June 30, 2011, all of the
defeased debt had been retired.
The bonds were collectively issued at a premium of $38,224 that is recorded in long-term
debt. The premium is being amortized as a reduction of interest expense. At June 30, 2011
the unamortized premium was $32,925. Metro incurred and deferred $276,296 of costs
related to the issuance of the bonds. At June 30, 2011, the remaining balance is $237,997.
Long-term debt principal and interest maturities subject to mandatory redemption for the
bonds are as follows:
Fiscal
Interest
Year Principal Expense
2012 $ - $ 1,074,425
2013 - 1,074,425
2014 - 1,074,425
2015 - 1,074,425
2016 - 1,074,425
2017-2021 - 5,372,125
2022-2026 - 5,372,125
2027-2031 - 5,372,125
2032-2034 20,820,000 2,686,063
$ 20,820,000 $ 24,174,563
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