FY2017 PROPOSED BUDGET

Washington Metropolitan Area Transit Authority
Appendix E: Debt Service
Proposed Fiscal Year 2017 Budget
Appendix E
Debt Policy/Borrowing Powers
Metro’s Compact allows Metro to borrow money in pursuit of its mission. All such bonds and
evidences of indebtedness are payable solely out of Metro’s properties and revenues. The bonds
and other obligations, except as may be otherwise provided in the indenture under which they were
issued, are direct and general obligations of Authority and the full faith and credit of Metro are
pledged for the prompt payment of the debt service.
Metro is required to make semi-annual payments of principal and interest on each series of bonds.
There are certain covenants associated with these outstanding bonds with which Metro must
comply. The most significant are:
• Punctually pay principal and interest according to provisions in the bond document.
• Except for certain instances, Metro cannot sell, mortgage, lease or otherwise dispose of
transit system assets without filing a certification by the General Manager/Chief Executive
Officer and Treasurer with the Trustee and Bond Insurers that such action will not impede
or restrict the operation of the transit system.
• Metro must at all times maintain certain insurance or self-insurance covering the assets and
operations of the transit system.
Existing Gross Revenue Transit Bonds
In October 2003, Metro issued $163.5 million of Gross Revenue Transit Refunding Bonds, Series
2003, to refund the callable portion of Metro’s outstanding Gross Revenue Transit Refunding
Bonds, Series 1993. The final maturity for the 1993 bonds was in July 2010 and the final maturity
for the 2003 bonds was July 2014.
In June 2009, Metro issued $243.0 million of Gross Revenue Transit Bonds, Series 2009-A and
$55.0 million of Build America Bonds, Series 2009-B. Bond proceeds net of premiums/discounts
totaled $309.9 million. The bonds provide for semi-annual payments of interest and annual
payments of principal, with final maturity in July 2034. The net annual jurisdictional debt service
payment on the bonds is $21.2 million, reflecting an annual credit of $1.3 million for the Series B,
Build America Bonds. Five jurisdictions opted out of the bond issuance and provided $115.0
million in funding to bring total proceeds related to the bond issuance to $425.0 million.
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