MTA MAY TURN TO $1.1 BILLION BOND.Byline: Lisa Mascaro Staff Writer Faced with dismal government funding for transportation, the MTA (1) (Message Transfer Agent or Mail Transfer Agent) The store and forward part of a messaging system. See messaging system. (2) See M Technology Association. 1. (messaging) MTA - Message Transfer Agent. is considering an ambitious plan to borrow $1.1 billion in order to finance and expedite five major transit projects, officials said Friday. Metropolitan Transportation Authority officials want to push the projects ahead to help relieve congestion The condition of a network when there is not enough bandwidth to support the current traffic load. congestion - When the offered load of a data communication path exceeds the capacity. on the nation's busiest freeways, which would go a long way toward meeting federal requirements for reducing smog. ``We've been able to keep our head above water with (traffic) congestion. If we're more aggressive, maybe we can make some ground,'' MTA Chief Executive Officer Roger Snoble said. ``It gives us the confidence to commit to those projects.'' The proposal will be reviewed by MTA committees next week and the full MTA board later this month. MTA Chairman Frank Roberts Frank Roberts may refer to:
``That's prudent for us to consider,'' said Roberts, also the mayor of Lancaster. ``We're building things now that can be used for generations to come.'' Under the proposal, the MTA would issue up to $1.1 billion in bonds over the next decade, which would be repaid using revenue from the 1 percent countywide sales tax sales tax, levy on the sale of goods or services, generally calculated as a percentage of the selling price, and sometimes called a purchase tax. It is usually collected in the form of an extra charge by the retailer, who remits the tax to the government. earmarked for transportation. The principal and interest would cost $80 million to $100 million annually for the 30-year life of the bonds. Officials predict they'll need to issue only $500 million in bonds, and that the state and federal governments will come up with the rest. The loan would be in addition to the $3.1 billion the MTA still owes for building its subway and light-rail lines. The principal and interest on those loans total about $290 million annually, or about 10 percent of the MTA's $2.9 billion annual budget. ``This is a last-resort plan,'' said MTA treasurer Terry Matsumoto. ``We only issue that much if a lot doesn't happen.'' The ambitious borrowing plan is designed to overcome obstacles created over the past three years when the state diverted $5 billion in transportation funds to shore up the general fund, shelving shelv·ing n. 1. Shelves considered as a group. 2. Material for shelves. 3. An incline; a slope. shelving Noun 1. material for shelves 2. all but the most pressing transportation improvements. Transportation improvements are especially critical in Southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region, . New car-pool lanes and mass transit mass transit, public transportation systems designed to move large numbers of passengers. Types and Advantages Mass transit refers to municipal or regional public shared transportation, such as buses, streetcars, and ferries, open to all on a projects are needed to reduce traffic congestion so the region can meet its federal air-quality goals. If the region fails to meet its air-quality targets, the federal government could suspend transportation funds across six Southern California counties until those goals are met. The Southern California Association of Governments has pressed the MTA to find alternative ways to keep the projects going. Already, the MTA has borrowed $561 million over the past 18 months to save the Valley's Orange Line busway and the Eastside light-rail project. The state and federal governments have promised to repay the MTA in future funds or in-kind projects. Additionally, officials said federal funding has faltered because Congress has gone a year without approving a new multiyear transportation funding bill. The MTA had been criticized in the past for excessive borrowing to build the rail lines, and federal authorities required the agency to establish a debt policy that sets limits on loans. Officials said this proposal is well within the capacity for borrowing allowed under the agency's debt policies. ``It's actually a very smart business decision to move these projects forward through borrowing,'' said David Yale, MTA's director of regional programming. ``There's always a concern, even when you're doing your own family budget, you're going to be borrowing more than you can afford to pay back in the future. We looked at that very carefully.'' Lisa Mascaro, (818) 713-3761 lisa.mascaro(at)dailynews.com AT A GLANCE The MTA wants to borrow $1.1 billion to expedite the following transportation improvement projects: --Golden State Freeway car-pool lanes in the San Fernando Valley San Fernando Valley Valley, southern California, U.S. Northwest of central Los Angeles, the valley is bounded by the San Gabriel, Santa Susana, and Santa Monica mountains and the Simi Hills. , between the 134 and 170 freeways. --Golden State Freeway car-pool lanes near the Orange County line, between the 91 and 605 freeways. --Exposition light-rail train from downtown to Culver City Culver City, city (1990 pop. 38,793), Los Angeles co., S Calif., a residential suburb of Los Angeles; inc. 1917. It is a center of the U.S. motion-picture industry, whose roots in the city date to c.1915. Its chief manufactures are rubber products and computers. . --Grade separations for freight trains through the San Gabriel Valley The San Gabriel Valley is one of the principal valleys of southern California. It lies to the east of the city of Los Angeles, to the north of the Puente Hills, to the south of the San Gabriel Mountains, and to the west of the Inland Empire. . --Direct connector for car-pool lanes beteen the Golden State Freeway The Golden State Freeway is a north-south freeway running through Kern County and Los Angeles County, California. Originally built as U.S. Highway 99, it was re-signed as Interstate 5 in 1964. and the Antelope Valley Freeway The Antelope Valley Freeway is a freeway in Los Angeles and Kern counties in southern California. It is signed as California State Highway 14 along its length. It connects Greater Los Angeles to the rapidly developing Antelope Valley. . CAPTION(S): 2 boxes Box: (1) AT A GLANCE (see text) (2) MTA'S DEBT SOURCE: Metropolitan Transportation Authority Gregg Miller/Staff Artist |
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