How to Start: Project Funding Lessons & Strategies

LA Metro Funding Commitments Inventory

October 27, 2015

RAIL~VOLUTION

Los Angeles County:County with the Largest Economy in the United States

• 88 incorporated cities

• Large Area › Total area of 10,574 square kilometers› Larger than the states of Rhode Island

and Delaware combined

• Large Population› 10 million people in LA County; 17.6

million in surrounding counties› More people than 42 states

• Diverse › More than 40% foreign-born› Over 220 languages spoken

• 17th largest economy in the world

2

For Los Angeles County, Metro is…

3

The Regional Planner• Long Range Plan• Capital Plan• Corridor Plans/Environmental Clearance

The Regional Builder/Funder • Rail and Bus• Highway• Major Roads

The Regional Operator• Metro Buses: 2,228 vehicles covering 1,433

square miles and 183 routes • Metro Rail: 88 miles, 6 lines, 80 stations• Bus Ridership Week Day: 1,058,021

Transit Project Construction Cost: $8.5 B

Includes $4.6 B in borrowing

Highway Project Construction Cost: $5.5 B

Includes $1.5 B in borrowing

Note: Costs include prior expenditures.

Sources: Local, State & Federal (SRTP 2015 – 2024)

$84.8 Billion

Countywide Sources Metro-Controlled Sources

$54.5 Billion

Uses: Transportation Public Investments by Mode:Countywide and Metro Controlled Spending Forecast

Countywide UsesFY 2015 – FY 2024 Metro Controlled Uses

FY 2015 – FY 2024

$84.8 Billion TotalFY 2015 – FY 2024

$54.5 Billion TotalFY 2015 – FY 2024

* Includes safety net program, agency-wide capital, and regulatory oversight.

Improving Capital Program Firewalls: 58% Operating Eligible & 25% Capital Only (FY 2015 - FY 2024)

Prop A

Prop C Measure R

TDA

But Combined Sales Tax is 58% Ops Eligible:

(millions)

$32.1 B

Sales Tax Firewalls Improving Over Time:

SRTP Planned Debt Service Uses less than 6% ($1,867 M) of Eligible Funds

(Used for Ops)

(Used for Capital)

Sum = 58%

Capital Cap or Ops

Operations Local Return

Operating Eligible Bond Funds Critical to Capital Program

$1,867 M(6%)

SRTP Planned Debt Service Uses 6% of Eligible Funds (Debt service for FY 2015 to FY 2024)

This 6% = $6.6 B in bond proceeds(FY 2015 to FY 2024)

Borrowing Key to Transformative Plan

Prop A & C Bonds

* Excludes Beginning Balances

Metro’s Transformative Financial Strategy…

• Capital improvement program exceeds $14 B– Transit & Highway

• Almost all under construction

• Borrowing brings in $6.6 B

• Debt capacity maximized– $1.5 B subordinate federal

loans critical to success» America Fast Forward

Legislation

Transit Improvements

Highway Improvements

Leads to Transformative Results:

Travel demand forecasted to increase by 6%

• Transit boardings increase to 2.6 M per day o a 13% increase from 2.3 M in 2014

• Rail transit track miles increase by 31%o Complementary bus service stays level

• Greenhouse gas emissions reduced by 9%o Surpasses the Air Resources Board per capita

passenger vehicle target of 8% in 2020

• Highway lane-miles increase by only 1.1%o High Occupancy Vehicle Laneso Freeway speed reductions mitigated, but can’t

increase without pricing o 2014 = 27.8 MPH o 2024 = 25.8 MPH