Last week, the San Francisco Municipal Transportation Agency (SFMTA) closed its first bond sale, raising $63.8 million to pay for infrastructure improvements and debt refinancing.
About $25.8 million of the proceeds will be invested in frontline Municipal Railway infrastructure and city-owned garages; another $38 million will go toward refinancing existing debt, SFMTA officials said in a prepared statement.
SFMTA was granted the authority to issue the revenue bonds in 2007, when voters passed Proposition A.
“In 2007, San Francisco voters recognized the need for the SFMTA to raise funds for crucial capital improvements and investments,” said Mayor Edwin Lee. “We are investing in the future of our city today by investing in our critical transportation infrastructure.”
Municipal Railway projects to be funded with the first series of bonds include improvements to transit signals; rehabilitation of the Sunset Tunnel, Muni Metro Turnback, and Muni Green Light Rail facility; replacement of the public announcement, display and radio systems; and major rehabilitation, preservation and improvement of existing parking facilities.
The agency received a “very favorable” interest rate of 3.7 percent over the 30-year life of the bonds, SFMTA officials said. The agency also realized a net present savings of $6.96 million, or 15 percent, for the refinanced bonds.
Repayment of the bonds is part of SFMTA’s budget.
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