Intercounty Connector financial plan, August 29, 2003

08/29/03 Page 1 of3 INTERCOUNTY CONNECTOR CONCEPTUAL FUNDING PLAN Proposal Components Approx. Range (S millions) GARVEE Revenue Bonds 1?»^ ?Ui£> <*t> 1° 'PUo* * ’fuilt'S $900 -$1,000 Future federal highway funds pay debt service Approx. $60 million /yr for 30 years Anticipate $50M to $100M in additional federal funds - reauthorization * Risk: amount, term, interest rates, pledge May need to reduce amount and term; provide insurance; MdTA pledge ICC Toll Revenue Bonds ( N oTou. 'ЪоЬ'ГН S ) ICC managed lanes (tolls) pay debt service Toll rates high - up to $6 / trip (full length ICC) Risk: public pressure to reduce toll rates: Tolls may not support $400-$600 million in bonds MdTA Toll Revenue Bonds MdTA facilities tolls pays debt service - (Reasonable cross subsidy) MDOT Trust Fund (pay-as-you go) 4?^^' -Tif»4; 1 I ‘tfT/ Political Issue - secure Governor’s view? Could be part of MDOT revenue increase Reason for Montgomery County to support revenue increase Helps with Balto.-Wash. parity issue; perception, “Washington gets ICC for free - using new federal funds and MdTA tolls, and then gets to double-dip into new MDOT revenue increase) Helps offset perception that ICC drives MdTA toll increase (not the case) Could include revenues from sale of assets and additional Federal Funds Special Federal Funds (pay-as-you-go) Special federal funds (re-authorization and or annual appropriations - Governor brings home the bacon - Washington) Total Amount Required» dj> Current Estimate - Preliminary - subject to change Note: Subjecho refinement and change (not the final plant. No decision reached on tolls or toll rates. All bonds issued by MdTA . MdTA support contingent upon ICC being tolled. * Federal funds: Now at S430M / year Anticipate after reauthorization S480M to S530M / year