Honorable Robert Nichols, Chair, Senate Committee on Transportation
John McGeady, Assistant Director Sarah Keyton, Assistant Director Legislative Budget Board
SB365 by Watson (Relating to bonds issued by certain metropolitan rapid transit authorities.), As Introduced
No fiscal implication to the State is anticipated.
The bill would amend the Transportation Code relating to the terms of bonds issued by certain metropolitan rapid transit authorities.
Local Government Impact
According to the Capital Metropolitan Transit Authority (CapMetro), the bill would result in a significant, positive fiscal impact for the authority. The provisions of the bill would allow CapMetro to purchase facilities, rather than lease them, and this purchase would result in savings on both a cash-flow basis and a residual asset basis. Using as an example a proposed paratransit operations and maintenance project, financed over 15 years or leased over 20 years, the bill would result in $20,583,609 in cash flow savings and a further $121,402,089 in residual assets compared to a leasing alternative.
352 Bond Review Board, 601 Department of Transportation