Transportation 2035 - State of Rhode Island: Division of Planning

December 2012MAJOR PROJECT ADVANCEMENT THROUGH GRANT ANTICIPATION REVENUE VEHICLE (GARVEE) FINANCINGIn 2003, the General Assembly granted approval for RIDOT to utilize Grant Anticipation Revenue Vehicle (GARVEE) bonds to finance five (5) large projects thatotherwise would have taken up a significant portion of the regular highway program. Motor Fuel bonds were used as the State match. The five projects areshown in the chart to the right, along with the percent of totalGARVEE/Motor Fuel financing provided to each project.Rhode Island's GARVEE Projects & PaymentsThere have been three GARVEE and Motor Fuel bond series issued: 2003,2006, and 2009. Each GARVEE issuance is a 12-year series, while eachMotor Fuel issuance is an 18-year series. The total remaining debtservice to be paid on the GARVEE and Motor Fuel bonds is $533.5 million.The last GARVEE bond will be paid down in FY 2021. The last Motor Fuelbond will be paid down in FY 2027. The table to the right shows theremaining debt service on the five GARVEE projects to be paid down, byyear.ProjectGARVEE BondsMotor Fuel BondsI-195 Relocation $ 298,242,193 48.9% $ 70,030,018 63.4%Rt. 403 Extension $ 92,553,993 15.2% $ 21,303,541 19.3%Freight Rail (FRIP) $ 32,756,843 5.4% $ 7,958,131 7.2%Sakonnet Bridge $ 105,164,324 17.3% $ 11,159,118 10.1%Washington Bridge $ 80,712,037 13.2% $ - 0.0%Total $ 609,429,390 100.0% $ 110,450,808 100.0%The GARVEE funding enabled the State to implement five projects critical to rebuilding the infrastructure ofRhode Island, fostering economic development and improving our quality of life as much as five years earlierthan if programmed through non-GARVEE sources.On the other hand, utilization of the GARVEE financing tool impacts the State’s overall ground transportationprogram by dedicating a significant portion of the State’s anticipated future federal highway programallocations to GARVEE bond retirement over an extended period of time. The effect on the remainder of theprogram would be magnified should the levels of federal highway program funding provided to Rhode Islandin the future be reduced for any reason.Transportation 2035 (2012 Update)State Guide Plan Element 611Rhode Island Statewide Planning ProgramRhode Island's Debt Service PaymentsFiscalMotorGARVEEYearFuelTotal2013 $ 48.4 $ 7.1 $ 55.52014 $ 48.4 $ 7.1 $ 55.52015 $ 48.4 $ 7.2 $ 55.62016 $ 52.6 $ 7.2 $ 59.82017 $ 52.8 $ 6.9 $ 59.72018 $ 52.8 $ 6.9 $ 59.72019 $ 43.8 $ 6.9 $ 50.72020 $ 43.6 $ 6.9 $ 50.52021 $ 43.2 $ 6.9 $ 50.12022 $ - $ 6.9 $ 6.92023 $ - $ 6.9 $ 6.92024 $ - $ 6.9 $ 6.92025 $ - $ 6.4 $ 6.42026 $ - $ 6.4 $ 6.42027 $ - $ 3.1 $ 3.1Total $ 434.0 $ 99.7 $ 533.7Page 3-4