FY 2013 Operating and Capital Budget - Metro Transit

Series 2009
In October 2009, the Executive Committee of the Metro Board of Commissioners authorized
the issuance of $97.2 million in Mass Transit Sales Tax Appropriation Bonds. The
transaction closed on November 9, 2009. Metro issued a total of $97,220,000 in fixed rate
serial and term bonds at an average rate of 4.97%. The bonds were issued at a discount. The
discount amount of $213,454 is being recognized over the 30 year term of the bonds. The
amount unrecognized at June 30, 2011 was $201,558. The bond proceeds were used as
follows:
• Approximately $75 million was used to refund the remaining $75 million of the $100
million par Series 2002A Variable Rate Bonds.
• Approximately $9.9 million was used to terminate (net) two interest rate swaps Metro had
in connection with the Series 2002A Variable Rate Bonds.
• Approximately $9.1 million was used to create a Debt Service Reserve Fund for the
bonds.
• The balance of approximately $2.5 million was used to purchase a bond insurance policy
($1.6 million), for the underwriters discount ($.45 million), and to buy other costs of
issuance (.55 million). The total cost of issue of $2,486,000 is being deferred over the 30
year term of the bonds. At June 30, 2011 the remaining balance was $2,347,910.
• The deferred amount of refunding was approximately $839,000. This amount is being
deferred over the original remaining life of the Series 2002 A Bonds. As of June 30,
2011, the remaining balance was approximately $781,000.
Fiscal
Interest
Year Principal Expense
2012 $ - $ 4,767,975
2013 - 4,767,975
2014 - 4,767,975
2015 - 4,767,975
2016 - 4,767,975
2017-2021 - 23,839,875
2022-2026 8,555,000 23,302,463
2027-2031 10,035,000 20,620,906
2032-2036 31,745,000 17,835,919
2037-2040 46,885,000 4,376,875
$ 97,220,000 $ 113,815,913
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