The Commonwealth of Massachusetts Commonwealth Transportation Fund - - PowerPoint PPT Presentation
APPENDIX A The Commonwealth of Massachusetts Commonwealth Transportation Fund Revenue Bonds Rating Agency Presentation $225,000,000* Commonwealth Transportation Fund Revenue Bonds (Rail Enhancement & Accelerated Bridge Programs), 2018
$225,000,000* Commonwealth Transportation Fund Revenue Bonds (Rail Enhancement & Accelerated Bridge Programs), 2018 Series A
* Preliminary, subject to change
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A. Legal Provisions B. Economic Fundamentals C. Pledged Revenues D. Debt Service Coverage E. Economic Development
Appendix – Projects to be Financed
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* Preliminary, subject to change
Commonwealth Transportation Fund Revenue Bonds Series: 2018 Series A Principal Amount: $225,000,000 Interest Payment Dates: June 1 and December 1, beginning December 1, 2018 Final Maturity Date: Due June 1, 2048 Security: Commonwealth Transportation Fund. Primary revenue sources: Motor Fuels Tax and Registry Fees Use of Proceeds: Fund costs of certain transportation projects of the Commonwealth under the: − Rail Enhancement Program ($210,000,000) − Accelerated Bridge Program ($15,000,000) Optional Redemption: Maturities on or after June 1, 2029 will be subject to redemption on any date after June 1, 2028
2018 Series A – Preliminary Amortization by Maturity Year Due (06/01) Amount Due (06/01) Amount
2020 $2,230,000 2034 $4,550,000 2021 $2,300,000 2035 $4,770,000 2022 $2,370,000 2036 $5,005,000 2023 $2,715,000 2037 $5,250,000 2024 $2,830,000 2038 $5,500,000 2025 $2,965,000 2026 $3,110,000 2043 Term Bond 2027 $3,260,000 2043 $31,810,000 2028 $3,415,000 2029 $3,590,000 2048 Term Bond 2030 $3,760,000 2048 $123,150,000 2031 $3,940,000 2032 $4,135,000 2033 $4,345,000
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Strong legal protections and underlying fundamentals have been the hallmarks of CTF's credit profile since its inception in 2010. Credit and economic factors fall well within Aaa/AAA quantitative thresholds, as evidenced by: Strong Legal Protections Safeguard Revenue Pledge
in the CTF and applied to debt service before they can be used for any other purpose Strong and Diverse Economic Base
Diverse and Stable State-wide Revenue Stream
$1.39 billion of pledged revenue annually
Superior Coverage and Liquidity
Transportation Capital Investment Drives Economic Development
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The Massachusetts Constitution itself protects motor fuel taxes and motor vehicle registration fees pledged to CTF bonds from diversion or use for any non-transportation purpose
Article LXXVIII of the Massachusetts Constitution: No revenue from fees, duties, excises or license taxes relating to registration, operation or use of vehicles on public highways, or to fuels used for propelling such vehicles, shall be expended for other than cost of administration of laws providing for such revenue, making of refunds and adjustments in relation thereto, payment of highway obligations, or cost of construction, reconstruction, maintenance and repair of public highways and bridges, and mass transportation lines and of the enforcement of state traffic laws, and for other mass transportation purposes; and such revenue shall be expended by the commonwealth or its counties, cities and towns for said highway purposes only and in such manner as the general court may direct; provided, that this amendment shall not apply to revenue from any excise tax imposed in lieu of local property taxes for the privilege of registering such vehicles.
The Special Obligation Act provides for a set of covenants that effectively protects CTF Bonds from revenue diversion, impairment of revenues and non-appropriation: So long as any CTF Bonds remain outstanding and any principal or interest remains outstanding, statute prohibits the Commonwealth from diverting Pledged Funds to “any other use” Commonwealth shall not impair the rights and remedies of the Trustee and owners of bonds under the Trust Agreement with respect to collection and application of Pledged Funds Trust Agreement covenant restricts the Commonwealth’s ability to alter Motor Fuel Taxes and Registry Fees unless the resulting Pledged Revenues exceed 4.0x MADS coverage The Massachusetts Constitution requires appropriation of most state funds, however, a non- appropriation of CTF revenues would create an annual shortfall of approximately $1.2 billion in the Commonwealth’s operating revenue, or almost $100 million per month on average 4x ABT supports liquidity and a healthy overall leverage position State governments and their priority-lien tax revenue trust fund-secured bonds (such as CTF) are protected from a federally imposed bankruptcy regime by the 10th Amendment to the U.S. Constitution – generally unlike other issuers, such as localities and territories – and from State impairment of bond contracts by the Contracts Clause
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$0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 1996 2000 2004 2008 2012 2016 Massachusetts U.S.
Per Capita Personal Income, Nominal Income (in nominal dollars)
$0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 1996 2000 2004 2008 2012 2016 Massachusetts U.S.
Per Capita Personal Income, Real Income (2017 dollars)
0% 2% 4% 6% 8% 10% 12% 1996 2000 2004 2008 2012 2016 Massachusetts New England U.S. 5.8 6.0 6.2 6.4 6.6 6.8 7.0 1996 2000 2004 2008 2012 2016
Unemployment Rate (%) Massachusetts Population (in millions)
Source: Commonwealth of Massachusetts Information Statement, March 22, 2018
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Projected revenues for Fiscal Year 2018 revenues are projected, unaudited and subject to change.
(1) Chapter 64A: 99.85% of the 24 cents/gallon tax flows to CTF Pledged Funds. 6.86 cents/gallon is pledged on a senior basis to Existing Gas Tax Bonds. Amount shown is prior to debt service for the Existing Gas Tax Bonds. (2) Chapter 64E: Special Fuels Tax levied on each of special fuels (24 cents) and liquefied gas sold or used in the Commonwealth. 100% of the 24-cent tax is included as CTF Pledged Funds. (3) Chapter 64F: Motor Carrier Tax levied on each gallon of gasoline and special fuels acquired outside and used within the Commonwealth. (4) Registry fees received by Registry of Motor Vehicles pursuant to Section 33 of Chapter 90 of the General Laws. (5) Direct payments received from US Treasury related to BABs/RZEDBs.
Ch 64A Gas Tax(1) BABs/RZEDBs Subsidies Ch 64E Special Fuels Tax(2) Ch 64F Motor Carrier Tax(3) License Registration Registry Information
Motor Fuels Taxes Registry Fees(4) Direct Payments(5)
Pledged Revenues include fuel and non-fuel sources with Motor Fuels Taxes (55.0%) and Registry Fees (44.2%) State-wide taxes and fees, on a large and diverse regional economy Revenue collections are strong with diversity in timing:
Motor Fuel Taxes are collected monthly by the Department of Revenue Registry Fees are collected daily at Registry branch and other locations Direct Payments are deposited on a semi-annual basis
$667.8 Million (48.0%) $11.5 Million (0.8%) $615.1 Million (44.2%) $97.4 Million (7.0%)
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Historic Commonwealth Transportation Fund Pledged Funds (in thousands)
Gas Tax, Fiscal Year Ending June 30 Special Fuels Tax, And Motor Carrier Tax Registry Fees Total % Growth/ Decline 2018 (1) $765,185 $615,146 $1,380,331 1.01% 2017 767,855 598,683 1,366,538 1.56% 2016 764,848 580,426 1,345,274 0.71% 2015 754,392 581,686 (3) 1,336,078 5.72% 2014 730,640 (2) 533,194 1,263,834 7.84% 2013 649,779 522,199 1,171,978 0.27% 2012 660,176 508,608 1,168,784 1.17% 2011 659,183 496,034 1,155,217 1.44% 2010 653,045 485,789 (4) 1,138,834 7.88% 2009 652,153 403,780 1,055,933 (1.14%) 2008 670,940 396,904 1,067,844 0.46% 2007 674,437 388,496 1,062,933 1.61%
Source: Fiscal Years 2007-2017, Office of the Comptroller of the Commonwealth, audited, and fiscal year 2018, Department of Revenue (“Pledged Motor Fuels Tax”) and MassDOT (“Registry Fees”), unaudited (1) Fiscal Year 2018 revenues are projected. (2) Effective July 31, 2013, motor fuel tax increased to 24 cents/gallon from 21 cents/gallon. (3) 2015 increase in revenues due to increases in certain Registry Fees. (4) 2010 increase in revenues due to change in fee structure.
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Source: Fiscal Years 2008-2017, Office of the Comptroller and Fiscal Year 2018, MassDOT, unaudited. (1) Certain prior years have been adjusted to reflect a reclassification of certain revenues as Pledged Registry Fees. Does not include amounts allocable to the cost of production of license plates, which in Fiscal Year 2017 was approximately $4.2 million. (2) Fiscal Year 2018 revenues are projected. (3) Fiscal Years 2011 and 2012 do not include $1 million and $2 million, respectively, of the Registry Fees which represented civil motor infraction fees collected in such Fiscal Years and transferred to the CTF in Fiscal Year
Registry Fee Collections
Increase in Revenues due to Change in Fee Structure Increase in Revenues due to Increases in certain Registry Fees
Pledged Percentage Registry Change in Fiscal Fee Receipts Registry Fee Year (in 000s) (1) Receipts 2018 $615,146 2.75% 2017 598,683 3.15 2016 580,426 (0.22) 2015 581,686 9.09 2014 533,194 2.11 2013 522,199 (3) 2.67 2012 508,608 2.53 2011 496,034 2.11 2010 485,789 20.31 2009 403,780 1.73 2008 396,904 2.16 Gas Tax, Special Fuels Tax, Percentage Fiscal And Motor Carrier Tax Change in Year (in 000s)(1) Taxes 2018 $765,185 (0.35%) 2017 767,855 0.39 2016 764,848 1.39 2015 754,392 3.25 2014 730,640 12.44 2013 649,779 1.57 2012 660,176 0.15 2011 659,183 0.94 2010 653,045 (0.14) 2009 652,153 (2.80) 2008 670,940 (0.52)
Motor Fuel Tax Collections
Motor Fuel Tax increased to 24 cents/gallon from 21 cents/gallon
Commonwealth increased annual CTF Pledged Revenue base by over $120 million annually in conjunction with the authorization of the CTF Rail Enhancement Program
Source: “Gasoline and Special Fuels Tax Rate”, Department of Revenue; “Pledged Motor Fuels Tax Receipts”, Fiscal Years 2007-2017, Office of the Comptroller and Fiscal Year 2018, Department of Revenue, unaudited. (1) Includes all Pledged Motor Fuels Tax collected by the Commonwealth pursuant to Chapters 64A, 64E and 64F of the Massachusetts General Laws and credited to various budgeted funds, except Aviation Fuel. See Commonwealth Motor Fuels Tax – Crediting of Receipts. Net of refunds and abatements from Gasoline Tax. See Commonwealth Motor Fuels Tax – Refunds and Abatements from Gasoline Tax. The table above reflects tax rates of 21¢ per gallon on fuel (other than liquefied gas), 19.1% of the average price per gallon on liquefied gas and 20.9685¢ of the 21¢ per gallon Gasoline Tax in effect prior to July 31, 2013. The table above reflects tax rates of 24¢ per gallon on fuel (other than liquefied gas), 19.1% of the average price per gallon on liquefied gas and 23.964¢ of the 24¢ per gallon Gasoline Tax in effect after July 31, 2013. (2) Fiscal Year 2018 figures are projected.
(2) (2)
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Average Price Gasoline Consumed Fiscal Year
(millions of Ending June 30 ($/gallon) (1) gallons) (2) 2018(3) $2.678 2,787 2017 2.347 2,796 2016 2.282 2,781 2015 2.925 2,739 2014 3.613 2,733 2013 3.684 2,721 2012 3.652 2,772 2011 3.204 2,766 2010 2.694 2,750 2009 2.577 2,759
Sources: “Average Price of Gasoline”: U.S. Department of Energy, Energy Information Administration; “Non-Farm Employment”: U.S. Bureau of Labor Statistics; “Gasoline Consumed”: Department of Revenue. (1) Reflects the Average Price of Gasoline ($/gallon) in all of Massachusetts. (2) Based on Historical Gasoline Tax Collections pursuant to Chapter 64A, except Aviation Fuel. See Commonwealth Motor Fuels Tax – Refunds and Abatements from Gasoline Tax. (3) Fiscal Year 2018 figures are projected.
Excise Other Taxes Tax and Fees Total New York 8.05 36.25 44.30 Connecticut 25.00 14.30 39.30 Rhode Island 33.00 1.00 34.00 Vermont 12.10 18.62 30.72 Maine 30.00 0.01 30.01 Massachusetts 24.00 2.54 26.54 New Hampshire 22.20 1.63 23.83
(in cents per gallon as of January 1, 2018 for selected NE states)
Source: American Petroleum Institute. Totals may not add due to rounding.
¢ ¢ ¢
Even with the significant volatility in underlying gasoline prices, gasoline consumption has remained relatively stable
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State Treasury (Sweep Account) Commonwealth Transportation Fund Revenue Account(3) To Commonwealth Transportation Fund, Free and Clear of Lien of Trust Agreement(5)
To GAN Trustee
(1) Subject to existing statutory or Constitutionally defined policies and procedures and the State Comptroller’s Cash Recognition and Reconciliation Policy. Fund accounting is subject to audit. State Treasury sweeps multiple funds, including the Commonwealth Transportation Fund. This is a summary of the Commonwealth's collection mechanisms and distribution mechanisms for reference only. (2) It is not unusual for the budget process to extend slightly into the next fiscal year, with final enactment of the budget occurring in early or mid-July. Interim budgets are typically enacted to provide funding after the end of the fiscal year until the full budget can be enacted and approved by the Governor. (3) Includes Non-Motor Fuels Subaccount and Motor Fuels Subaccount. (4) Debt service for the 1994 Trust Agreement Bonds is subject to appropriation as part of the Commonwealth's annual budgeting process as outlined in the respective Official Statement. (5) Following deposit into the Debt Service Fund, funds flow into the Subordinated Debt Service Fund (not currently active).
Trustee Held Fund
Ch 64E Special Fuels Tax
1994 Trust Agreement for Debt Service on 1994 Trust Agreement Bonds(4)
Debt Service Fund
Trustee Held Fund, Subject to appropriation
[Transfer to Revenue Account not subject to annual appropriation] [Transfer to Debt Service Fund is subject to annual appropriation]
Ch 64A Gas Tax License Ch 64F Motor Carrier Tax Registration Registry Information
Direct Payments
CTF Pledged Funds are Constitutionally dedicated for transportation, supported by a robust accounting and control regime and as provided in the Special Obligation Act must be used to pay debt service before the State can access the funds for any other transportation related purpose The Massachusetts Constitution requires nearly all spending, including the CTF, to be subject to appropriation The Massachusetts Legislature specifically provided CTF bondholders with the highest priority claim to Pledged Funds and the flow of Pledged Funds to the Revenue Account is not subject to legislative review, action or interference To establish its premier credit with the highest ratings, the Commonwealth created strong safeguards in the flow of funds to ensure debt service is paid State depository accounts are swept daily by the Treasury, credited to the appropriate accounts and recorded by the Comptroller into the Commonwealth accounting system, consistent with best practices(1) DOR and MassDOT deliver a certificate to the Trustee stating the amount of Pledged Funds collected each month within 8 business days of month end The Treasurer deposits Pledged Funds into the Revenue Account held by the Trustee within 2 business days of receiving the certificate, which deposit is not subject to annual appropriation Debt service is appropriated annually as part of the Commonwealth’s annual budgeting process. Until an appropriation has been made, no funds may be transferred out of the Revenue Account for any purpose(2)
Pledged Funds
[MassDOT and DOR deliver certificate to Trustee] [ ------- Collected Monthly by DOR ------- ] [ -- Collected Daily by Registry of Motor Vehicles -- ]
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The Commonwealth has a highly sophisticated and centralized revenue collection, accounting and disbursement mechanism for its various revenue streams with individual accounts and sub- accounts governed by specific statutes The diverse nature of revenue collections, including for the CTF, does not allow for direct transfer to the Trustee without significant business implications for the Commonwealth: The Commonwealth's Tax Collector, the Department of Revenue (DOR), is projected to collect approximately $29.4 billion of tax revenue gross cash receipts in the current fiscal year(1) Included among the Commonwealth's tax receipts are $765 million of CTF Motor Fuel Taxes remitted as part of the Commonwealth's tax collection process, representing about 3% of tax revenue collections DOR accounting and control procedures identify and track tax revenue receipts for their intended purpose. This includes CTF Motor Fuel Taxes ultimately directed to the State Treasurer and CTF Trustee The Registry of Motor Vehicles (RMV) similarly collects both Pledged and non-Pledged fees simultaneously. As with DOR, RMV accounts for and tracks registry fees for their intended purpose. Separating Pledged from non-Pledged Registry Fees and remitting them directly to the Trustee is not practical without creating potential administrative and control concerns The accounting and control procedures at DOR and RMV demonstrate all of the protections / benefits of a Lockbox revenue collection system. Fees are swept daily and accounted for until certification and deposited with the CTF Trustee on a monthly basis
(1): Other Tax Revenue per Commonwealth of Massachusetts Quarterly Cash Flow Statement, projections as of March 2018. CTF Motor Fuel Taxes FY2018 projections per Department of Revenue as of May 2018, unaudited.
Total Tax Revenue: $29.4 billion
GFOA Best Practice guidance suggests Lockbox services be evaluated "if advantages can be gained in the areas of accuracy, cash flow, internal control and efficiency" and in particular on the collection of "paper-based payments" The Commonwealth has made recent substantial investments in technology to support collection procedures at DOR and RMV: MassDOT implemented Release 1 of ATLAS in March 2018 to replace the existing Automated Licensing and Registration System to improve: (i) customer service; (ii) recording and reporting of RMV licensing and registration transactions (iii) and revenue collections. MassTaxConnect launched in November 2015 as a new functionality that will make filing taxes electronically easier, more efficient More than 99% of motor fuels collections by total dollar value are remitted electronically
CTF Motor Fuel Taxes Other Tax Revenue 3% 97%
Commonwealth Budgetary Funds: Tax Revenue Only ($ in millions) (1)
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*Preliminary, subject to change
Following the 2018 Series A issuance, coverage is projected to be 7.6x* The Commonwealth plans to issue approximately $937.25 million* (which amount includes net premium)
Projected debt service coverage including anticipated Accelerated Bridge Program (ABP) and Rail Enhancement Program (REP) issuance through FY 2022 is estimated to be approximately 6.0x* based
200 400 600 800 1,000 1,200 1,400 1,600 2018 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040 2042 2044 2046 2048
($ Million) FISCAL YEAR (6/30)
CTF Coverage Post Issuance of 2018 Series A Bonds
2018 Series A DS Outstanding DS Less Refunding Total Projected Pledged Revenues
200 400 600 800 1,000 1,200 1,400 1,600
($ Million) FISCAL YEAR (6/30)
CTF Coverage With Projected Issuance Through FY2022
DS on 2022 Bonds DS on 2021 Bonds DS on 2020 Bonds DS on 2019 Bonds
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The Administration anticipates the issuance of CTF Bonds, including net premium, of approximately $1,196.2 million total for spending in FY2019-2023 Actual amount and timing of future bond issues are subject to change Based on currently projected issuance, and assuming no growth in pledged revenues, MADS coverage for the CTF Bonds following the issuances shown above is projected to be 6.0x
Issuance Year Par Proceeds 2018* $225.0 million $258.9 million 2019 $225.0 million $258.8 million 2020 $300.0 million $345.0 million 2021 $225.0 million $258.8 million 2022 $65.0 million $74.8 million
*2018 Series A Offering *Preliminary, subject to change
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Assuming no revenue growth, total projected debt service coverage on the 2018 Series A CTF Bonds is approximately 7.6x through FY2048.
CTF BOND DEBT SERVICE COVERAGE PROJECTION (1) ($000s)
(1) Estimated debt service coverage for fiscal year 2018 and thereafter is based on the Commonwealth’s projected revenues in fiscal year 2018, which is preliminary, unaudited and subject to change,and assuming no growth in such receipts in future years. Debt service projections for Bonds to be issued in fiscal years 2019 through 2023 are estimates based on current program needs and are subject to change. (2) Consists of (i) 17.104¢ per gallon of Chapter 64A Gasoline Tax, (ii) 100% of the Special Fuels Tax and Motor Carrier Tax, (iii) Registry Fees expected to be credited to the Commonwealth Transportation Fund pursuant to Section 34(iii) of Chapter 90, (iv) Projected Excess from Prior Pledged Funds (“Projected Excess” represents Prior Pledged Funds of 6.86¢ per gallon of the Chapter 64A Gasoline Tax after payment of debt service on the outstanding 1994 Trust Agreement Bonds) and (v) Direct Payments relating to the 2010 Bonds, reduced for the 6.6% reduction in subsidy payments projected during federal fiscal year 2018 by the Department of Treasury as a result of sequestration. (3) Reflects gross debt service on Prior CTF Bonds. (4) Assumes the aggregate issuance in fiscal years 2019 through 2022 of $937.3 million (which amount includes net premium) of Additional Bonds for the Accelerated Bridge Program and Rail Enhancement Program. Projected Debt Service on future issuance assumes current market rates.
1994 Trust Prior CTF Bonds SFY Agreement Prior CTF Bonds and 2018 Bonds Total Total CTF Total Ending Bonds Total Projected CTF Prior CTF Bonds Debt Service on and 2018 Bonds Debt Service Excess Debt Service on Bonds Debt Service Excess June 30 Debt Service Pledged Funds (2) Debt Service (3) 2018 Bonds Debt Service Coverage (1) Pledged Funds Future Bonds(4) Debt Service(4) Coverage(1) Pledged Funds 2019 29,818 1,362,014 166,141 10,306 176,448 7.7x 1,185,567
7.7x 1,185,567 2020 29,822 1,362,011 166,143 13,339 179,481 7.6x 1,182,529 11,250 190,731 7.1x 1,171,279 2021 29,821 1,362,012 166,143 13,342 179,485 7.6x 1,182,527 27,259 206,744 6.6x 1,155,268 2022 29,821 1,362,011 166,140 13,343 179,483 7.6x 1,182,528 42,054 221,537 6.1x 1,140,475 2023
169,818 13,593 183,411 7.6x 1,208,422 47,408 230,819 6.0x 1,161,013 2024
169,815 13,599 183,415 7.6x 1,208,418 47,408 230,823 6.0x 1,161,010 2025
169,775 13,593 183,368 7.6x 1,208,113 47,395 230,763 6.0x 1,160,717 2026
169,725 13,590 183,315 7.6x 1,207,785 47,384 230,699 6.0x 1,160,401 2027
169,675 13,584 183,259 7.6x 1,207,406 47,367 230,627 6.0x 1,160,039 2028
169,622 13,576 183,198 7.6x 1,207,010 47,352 230,550 6.0x 1,159,658 2029
169,557 13,580 183,138 7.6x 1,206,587 47,332 230,470 6.0x 1,159,255 2030
169,499 13,571 183,070 7.6x 1,206,145 47,316 230,386 6.0x 1,158,829 2031
169,433 13,563 182,995 7.6x 1,205,681 47,303 230,298 6.0x 1,158,379 2032
169,358 13,561 182,919 7.6x 1,205,179 47,280 230,199 6.0x 1,157,899 2033
169,279 13,564 182,843 7.6x 1,204,643 47,259 230,102 6.0x 1,157,385 2034
169,206 13,552 182,758 7.6x 1,204,083 47,236 229,994 6.0x 1,156,847 2035
169,120 13,544 182,664 7.6x 1,203,494 47,217 229,881 6.0x 1,156,277 2036
169,031 13,541 182,572 7.6x 1,202,865 47,189 229,761 6.0x 1,155,676 2037
168,932 13,536 182,467 7.6x 1,202,207 47,166 229,633 6.0x 1,155,041 2038
168,830 13,523 182,353 7.6x 1,201,450 47,137 229,491 6.0x 1,154,313 2039
168,695 13,518 182,213 7.6x 1,200,496 47,096 229,309 6.0x 1,153,400 2040
168,547 13,510 182,056 7.6x 1,199,497 47,061 229,118 6.0x 1,152,435 2041
168,397 13,502 181,899 7.6x 1,198,432 47,016 228,915 6.0x 1,151,416 2042
168,402 13,495 181,897 7.6x 1,198,434 47,014 228,911 6.0x 1,151,420 2043
168,401 13,497 181,898 7.6x 1,198,433 47,016 228,915 6.0x 1,151,416 2044
168,397 13,503 181,900 7.6x 1,198,431 47,011 228,910 6.0x 1,151,421 2045
168,398 13,500 181,898 7.6x 1,198,433 47,015 228,913 6.0x 1,151,418 2046
168,396 13,500 181,895 7.6x 1,198,436 47,017 228,912 6.0x 1,151,419 2047
22,050 43,025 65,075 21.2x 1,315,256 163,839 228,914 6.0x 1,151,417 2048
65,074 21.2x 1,315,257 163,838 228,912 6.0x 1,151,419 2049
228,911 228,911 6.0x 1,151,421
Casey Overpass Construction of a new fully accessible Orange Line Headhouse Bicycle and pedestrian accommodations Design and construction of a new Upper Busway Canopy for the Forest Hills Station Connects transit-friendly Jamaica Plain neighborhood of Boston and unlocks development parcels that have spurred new housing production
Funding from CTF Bonds has unlocked key development projects in the Commonwealth
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Knowledge Corridor Improvements in intercity service between Springfield, Holyoke, Northampton, Greenfield, and Vermont further link the Pioneer River Valley economies. Knowledge Corridor project elements include: − Cross-tie and track replacement along the Connecticut River Main Line − Construction of an underpass in Northampton − Improvements to bridges and platforms − Switch and signal upgrades − Leverages Springfield Union Station renovations Union Station in Springfield – Re-opened June 2017
Funding from CTF Bonds has unlocked key development projects in the Commonwealth
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Silver Line to Chelsea The Silver Line Gateway Project provides new, dedicated bus rapid transit (BRT) service connecting Chelsea and East Boston (via the Blue Line’s Airport Station) with the Red Line’s South Station and Seaport District in Boston Silver line service began on April 21, 2018 Chelsea will become one of the only communities with direct access to both North and South Station "In Chelsea…economic growth has been truly remarkable. The challenge for the City in this transition, is no longer attracting development—the interest is almost overwhelming."(1)
Recently permitted developments in Chelsea include: Broadway Hotel – 104 Room new hotel development Chelsea Clock Development – $50 million mixed use residential development with 692 housing units Second Street Hotel – 106 Room Hampton Inn French Club – 34 affordable housing units
Funding from CTF Bonds has unlocked key development projects in the Commonwealth
(1): Source: City of Chelsea -- https://www.chelseama.gov/planning-development/pages/economic-development
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CTF is Among the Strongest Transportation Credits in the United States and Deserves the Highest Rating Level CTF was created to be the Commonwealth's premier credit and achieve the highest ratings CTF Pledged Funds are projected to total $1.392 billion in FY2018 derived from statewide taxes on a robust regional economy Pledged Funds are diversified and include both Motor Fuels Tax and Registry Fees CTF legal framework protects Pledged Funds and fully mitigates the risk of non-appropriation: Massachusetts Constitution bars the use of Motor Fuel Taxes and Registry Fees for any non- transportation purpose Commonwealth covenants not to impair rights and remedies of Trustee and owners of bonds under Trust Agreement with respect to collection and application of Pledged Funds Trust Agreement covenant restricts the Commonwealth’s ability to reduce the revenues derived from Motor Fuel Taxes and Registry Fees Special Obligation Act provides that, without a legislative appropriation to pay debt service, the Commonwealth may not expend Pledged Funds for any other use Non-appropriation would create a shortfall in the Commonwealth's operating revenue of approximately $1.2 billion, or almost $100 million per month on average Debt service coverage, including expected future issuances, is estimated to be approximately 6.0x Strong ABT of 4.0x MADS
The financing schedule calls for the CTF 2018 Series A bonds to price and close in June
*Preliminary, subject to change
June
Financing Schedule*
Date Event June 5 Receive Ratings June 6 Mail Preliminary Official Statement June 19 Retail Order Period June 20 Pricing June 27 Closing
S M T W T F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 2627 28 29 30
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Commonwealth Transportation Fund (CTF) Revenue Bonds are currently issued under two programs: Rail Enhancement Program (REP)
fund MassDOT capital expenditures and other rail improvements
Accelerated Bridge Program (ABP)
date of September 30, 2016.
Green Line Extension Silver Line to Chelsea Orange and Red Line Project Casey Overpass South Coast Rail Expansion Fairmount Line Improvements Knowledge Corridor Other REP Projects Longfellow Bridge John Greenleaf Whittier Memorial Bridge Fore River Bridge Woods Memorial Bridge West Main Street Bridge (Millbury)
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Extend the existing MBTA Green Line by utilizing two distinct branches within the existing railroad right-of-way: a “mainline” branch which will operate along the existing Lowell commuter rail line, beginning at a relocated Lechmere Station in Cambridge and traveling through Somerville to College Avenue in Medford; and a branch line operating within the right-of-way for the existing Fitchburg commuter rail line leading to Union Square in Somerville The Green Line Extension project includes the following elements: − 4.4 miles of new Green Line track and relocation of 4 miles of existing commuter rail track − Relocated Lechmere Station anchoring transit-oriented development in Cambridge − Five additional new stations in Somerville and one new station in Medford − Roadway and traffic improvements − Reconstruction of bridges and construction of viaduct structures − Catenary, signals, communications and power to support the extension − Extension of the existing Somerville Community Path − 24 new Green Line vehicles − A new Green Line vehicle storage and maintenance facility Following a comprehensive review of the Green Line Extension in 2016, MassDOT and MBTA revised the project scope with a new cost estimate of $2.3 billion and presented an updated finance plan to the Federal Transit Authority (FTA) in June 2017. Subsequently, FTA’s concurrence on the revised project scope and cost estimate was issued and the MBTA executed a design-build contract with GLX Constructors for a not-to-exceed contract price of $1.082 billion. The notice to proceed was issued in December 2017, following the FTA
Proceeds of 2018A CTF Bonds will be applied to the Commonwealth’s share of the costs of the Green Line Extension project related to certain contracts already underway
Program includes procurement and replacement of new Orange Line and Red Line vehicles to improve reliability accessibility and energy efficiency as well as associated improvements to maintenance facilities, track and signal infrastructure to accommodate the new fleet and to address the state of good repair needs of the MBTA New cars will feature increased capacity and additional seating, wider and electrically operated doors, accessible areas in each car, LED lighting, updated HVAC systems and improved communication systems The Red and Orange Line Improvements program includes the following elements: − New Vehicles:
− Orange Line infrastructure improvements:
− Red Line infrastructure improvements:
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This project involves early action items for the expansion of commuter rail service approximately 50 miles from Boston to Taunton, New Bedford, and Fall River. South Coast Rail Extension early action items include: − Fully upgraded and completed one grade crossing in Taunton, one grade crossing in New Bedford, and three grade crossings in Freetown − Track work in Freetown and New Bedford has been fully completed − Four bridge replacements in New Bedford and Fall River are fully funded and are substantially completed − Upgrades, replacement and/or improvements to culverts along lines − Tie replacement along the Middleborough line − Four bridge replacements under the footprint bridge exemption − South Coast Rail Expansion project design − Evaluation of an alternative route
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Will provide various improvements to the Fairmount commuter rail line The Fairmount Line runs from South Station to Hyde Park Fairmount Line Improvements include the following: − Upgrades to two Fairmount Line stations and the addition of four new stations − Reconstruction of six bridges − Construction of a new track interlocking switching system − Signal system upgrades
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Fore River Bridge
(State Route 3A) over the Fore River in Quincy and Weymouth
Longfellow Bridge
Boston and serves 28,600 vehicles , as well as bicycle and pedestrian traffic
daily passenger load of 90,000
John Greenleaf Whittier Memorial Bridge
will be replaced with a new 8 lane structure matching the existing 8-lane roadway cross section to the south
Woods Memorial Bridge
Everett and the City of Medford and the Revere Beach Parkway (State Route 16)
Millbury Bridge
single span structure