AB 422, as amended, McCarty. Sacramento Regional Transit District: line of credit.
Existing law provides for the creation of the Sacramento Regional Transit District, with specified powers and duties relative to the provision of public transit services. Existing law authorizes the district to engage in temporary borrowing, as specified.
This bill would authorize the district to seek and receive a short-term revolving line of credit for operating purposes in anticipation of receipt of operating grants, with the extension of credit to the district evidenced by a note, in addition to and as an alternative to temporary borrowing, as specified. The bill would authorize the district to pledge anticipated grants and other available funds as security for repayment of the note and would prescribe other terms.
Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 102584 is added to the Public Utilities
2Code, to read:
In addition to, and as an alternative to, the borrowing
4authority in Section 102582, the district may seek and obtain a
5short-term revolving line of credit for operating purposes in
6anticipation of receipt of operating grants, with the extension of
7credit to the district evidenced by a notebegin insert, pursuant to a resolution
8adopted by the board of directors of the districtend insert. The district may
9pledge the anticipated grants and any other funds available to the
10district, including, but not limited to, fare revenues collected by
11the district in connection with the operation of its transit system
12and any other revenues, income, or receipts, as security for
13repayment of the note,
the interest on the note, and the related
14obligations evidenced by the note. The note shall have a maturity
15date of not more than 60 months from the date of issuance. The
16district may pledge anticipated operating grants and other available
17funds over a multiyear period. Notwithstanding the 60-month
18maturity period for the line of credit, the maximum indebtedness
19under the note shall not exceed the maximum amount in federal
20operating grant revenues that the district anticipates receiving in
21a single fiscal year, and shall not exceed 85 percent of the amount
22of the anticipated grants and other funds that the district anticipates
23receiving in a single fiscal year that are pledged to repay the note,
24the interest on the note, and the related obligations evidenced by
25the note.
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