Federal Transportation Spending

TIFIA Loan Program

Benefits of TIFIA➔ Municipal bonds – interest rates are

related to credit rating and coverage ratios

➔ TIFIA provides same interest rate to all borrowers as long as the project is creditworthy – BBB minus, bbb minus

➔ Leaves more money for other project costs

Benefits of TIFIA➔ Lock in interest rate before project

beginnings• Reduce uncertainty and potential for cost

overruns

➔ No interest – costs – until funds are accessed• Can backload the use of TIFIA loan proceeds to

reduce costs

➔ Deferred payments for up to 5 years

Benefits of TIFIA

TIFIA and Transit➔ Lynx light rail costs

$462M➔ Received a $192M

New Starts grant➔ What if they did not

get a New Starts grant?

TIFIA and Transit

TIFIA and Transit

TIFIA and Transit

New Orleans Streetcar

Kansas City Streetcar

Source Amount (Millions)

Share

STP & CMAQ Grant

$17.3 17%

City/KCATA Funds $10.7 11%

Transportation District Revenues

$73.5 72%

Total $101.5 100%

Market showing preference for walkable places

Market showing preference for walkable places

Market showing preference for walkable places

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