MAXIMIZING THE USE OF PRIVATE CREDIT MARKETS FOR TRANSIT INVESTMENTS
The opportunities created by the 1982 Surface Transportation Assistance Act are examined to increase the role of private capital markets in financing transit investments. These opportunities include: the potential for more extensive grant anticipation financing using the Section 9 block grant as a credit source, the potential impact of contract authority flowing from Highway Trust Fund dollars on financing options available to grantees under the Section 3 discretionary program, and the potential impact of federal funding under the 1982 Surface Transportation Assistance Act on the terms and availability of credit for the non-federal portions of transit capital budgets. The impact of these opportunities on future applications of existing financing tools to transit capital projects is examined. Existing credit instruments, such as dedicated tax revenue bonds, transit revenue bonds, service contract bonds, general obligation debt, toll revenue bonds, and grant anticipation notes are described and examples are cited. The conclusions reached indicate that the 1982 Surface Transportation Assistance Act will permit opportunities for longerterm grant anticipation financing and should favorably influence the terms and availability of credit for the non-federal portions of transit capital budgets. Realization of these opportunities can be expected to reduce overall project costs by allowing construction schedules to be optimized and interest costs to be lowered.
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Availability:
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Supplemental Notes:
- Distribution, posting, or copying of this PDF is strictly prohibited without written permission of the Transportation Research Board of the National Academy of Sciences. Unless otherwise indicated, all materials in this PDF are copyrighted by the National Academy of Sciences. Copyright © National Academy of Sciences. All rights reserved. Publication of this paper sponsored by Committee on Local Transportation Finance.
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Authors:
- Parker, Jeffrey A
- Publication Date: 1984
Media Info
- Media Type: Print
- Features: References;
- Pagination: pp 37-42
- Monograph Title: State and local finance issues : roads and transit
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Serial:
- Transportation Research Record
- Issue Number: 967
- Publisher: Transportation Research Board
- ISSN: 0361-1981
Subject/Index Terms
- TRT Terms: Bonds; Construction projects; Federal aid; Financing; Legislation; Loans; Private enterprise
- Old TRIS Terms: Block grants; Interest
- Subject Areas: Construction; Finance; Highways; Law; Public Transportation; I10: Economics and Administration;
Filing Info
- Accession Number: 00392960
- Record Type: Publication
- ISBN: 0309037247
- Files: TRIS, TRB
- Created Date: May 31 1985 12:00AM