Commission Authorizes Issuance of Sales Tax Revenue Bonds

Voter approval of the Measure A extension in 2002, marked the beginning of a long-term effort to fund and plan transportation projects in Riverside County.  The first Measure was in place from 1989 to 2009. The new Measure, which began collecting revenue in 2009, will last until 2039.  By approving the new Measure seven years before its implementation, there was no increase in the sales tax rate of .5 percent and it allowed RCTC to plan ahead and even finance projects prior to the 2009 start date of the new measure.

During the middle portion of this decade, RCTC moved forward with a sound commercial paper financing plan to fund right-of-way purchases, engineering and other pre-construction activity on a number of projects.  This has enabled the Commission to move forward in implementing the new Measure as quickly as possible.

At its August 2009 meeting, RCTC continued to move forward with this effort by authorizing the issuance and sale of $185 million in bonds and approved a number of required agreements to complete the transaction.   The new Series 2009 bonds will not increase RCTC’s total debt but will refinance bonds sold in 2008 and will retire $50 million in commercial paper notes.

RCTC’s financial team and the Commission’s leadership will meet with rating agencies in New York in late August and expect to receive solid ratings in early September.  The Commission’s bond coverage will be instrumental in obtaining positive credit ratings and favorable interest rates.  The actual bond sale has an expected closing date of October 1, 2009.

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RCTC To Close On Fridays

Due to severe budget pressures, the County of Riverside will be closing the County Administrative Center (CAC) every Friday.  In spite of its name, RCTC is not a county agency; however, it is a tenant in the CAC located on Lemon Street in downtown Riverside.  As a result of the building closure, RCTC adopted changes in its work schedule and availability to the public.  Beginning August 14, 2009, RCTC will be closed every Friday; the office will be open from 7:30 a.m. to 5:30 p.m. Monday through Thursday.

Although the economic downturn has impacted transportation revenue, the Commission has not had to resort to pay cuts and layoffs. Instead, savings have been realized through a reduction in leave and holiday benefits, the elimination of merit raises and three positions left vacant via retirement will not be filled this fiscal year.  RCTC currently has a staff of 40.