RCTC also used this opportunity to reduce its total outstanding debt by $17.3 million.  By voter-approved ordinance, RCTC may not be indebted under the Measure A sales tax more than $975 million, making this week’s refinancing key for future flexibility to finance needed transportation projects.

Just days prior, the RCTC Commission unanimously voted to pursue the refinancing on an accelerated schedule.  The federal Tax Cuts & Jobs Act approved by Congress this week will remove the tax exemption for such bond sales, effective January 1, 2018, meaning RCTC had only a few weeks to go through the complex process to achieve these significant taxpayer savings.

Last week, S&P Global Ratings and Fitch Ratings reaffirmed RCTC’s credit at AA+ and AA, respectively.

The entire $52 million in savings will not be realized all at once; rather the amount will accrue to RCTC on an annual basis in the form of lower interest payments through 2039 on Measure A debt issued to finance transportation projects.

To learn more about how a bond refinancing works, click here to review the presentation given to the Commission and watch the video below from the Budget & Implementation Committee:

The I-15 Express Lanes Project will add two tolled express lanes in each direction on I-15 between Cajalco Road and SR-60, a distance of approximately 15 miles.

Future traffic and population growth forecasts show that traffic will continue to increase along this corridor, reducing mobility and increasing travel times. This project will help alleviate those issues in a fiscally responsible manner, ensuring the free flow of traffic in the future.

Through toll collections on these express lanes, RCTC will ensure adequate ongoing funding for maintenance and repair.  Tolls will also pay back the TIFIA loan.  Any toll revenue above what is needed for maintenance and debt payments will be invested back into mobility improvements on the I-15 corridor.  

In addition to the federal TIFIA loan, local and federal funds will also be used to pay for a portion of the initial construction including Riverside County’s voter-approved Measure A transportation sales tax program. The overall cost of the project is approximately $455 million.

The loan represents the agency’s second TIFIA loan award, a testament to RCTC’s bond rating, sound planning, and fiscal responsibility. The previous TIFIA loan helped fund the recently-opened 91 Project.

Riverside County’s congressional delegation provided strong support for the TIFIA loan, including Senators Dianne Feinstein and Kamala Harris, and Congress Members Calvert and Takano.

To learn more about the I-15 Express Lanes project, check out this Fact Sheet and this Frequently Asked Questions page available in both English and Spanish.  You can also follow the project on Facebook.

The Mid County Parkway project is one step closer to becoming reality. Last week, a Riverside County Court judge upheld RCTC’s environmental impact report, meaning the project passes muster with the California Environmental Quality Act (CEQA).

The Mid County Parkway project is a proposed east-west,16-mile highway corridor linking Perris and San Jacinto between Interstate 215 and State Route 79. It is an important project to ensure RCTC continues to meet Riverside County’s future transportation needs and will help commuters save time as it establishes important new connection points in our county.

In order to demonstrate fiscal responsibility and a commitment to protecting the environment, RCTC undertook a thorough environmental review process starting in November 2004.

That plan was then challenged in federal and county courts by the Center for Biological Diversity, Friends of Riverside’s Hills, Sierra Club, Friends of the Northern San Jacinto Valley and the San Bernardino Valley Audubon Society.

RCTC’s plan has now prevailed in federal and county court, although the plaintiffs have the opportunity to appeal this ruling.

This same group of plaintiffs has also filed suit to halt the SR-60 Truck Climbing Lanes project. These proposed truck climbing lanes would provide critical safety improvements along SR-60 in an area known as the Badlands. The case is expected to be heard in 2018, delaying this critical safety project.

Mid County Parkway will be built in phases, beginning with a new interchange at I-215 and Placentia Avenue in Perris.  Design of the interchange is underway and construction could begin by late 2019.  This is the first of ten interchanges that will be built as part of Mid County Parkway, providing needed mobility to Riverside County residents.

Measure A, Riverside County’s voter-approved half-cent sales tax for transportation projects is funding Mid County Parkway.

To learn more about Mid-County Parkway, check out this link to the project page.

The Point: RCTC’s I-15 Express Lanes have received necessary loan ratings to move forward with financing and construction.

The I-15 Express Lanes Project adds tolled express lanes to the median of Interstate 15 (I-15) between State Route 60 (SR-60) and Cajalco Road, providing a time-saving alternative to congestion on one of Riverside County’s most heavily-traveled corridors.

A loan from the federal government under the Transportation Infrastructure Finance and Innovation Act (TIFIA) will provide low-interest financing to construct the project.  Tolls paid by customers of the new lanes will repay the loan and pay for maintenance and daily operation of the lanes for 50 years. 

In order to receive the TIFIA loan from the United States Department of Transportation (US DOT), RCTC must demonstrate a creditworthy plan of finance for the I-15 Express Lanes, much like a home-buyer must receive an approval before securing a mortgage.

In an affirmation of RCTC’s responsible stewardship and creditworthiness of the I-15 Express Lanes, Kroll Bond Rating Agency (KBRA) has assigned a BBB rating to RCTC’s loan.  This represents the second investment grade rating assigned to the TIFIA loan, as Fitch Ratings has assigned a BBB- rating. 

These ratings demonstrate continued momentum in the approval actions needed within US DOT on behalf of the I-15 Express Lanes Project.  After several months of diligent negotiation and collaboration with the federal government, RCTC is awaiting final approval of the TIFIA loan application within the next few weeks from U.S. Secretary of Transportation Elaine Chao.

To stay connected to the I-15 Express Lanes Project, please visit the official project website and Facebook page, as well as future articles here at The Point!