Georgia’s Metro Atlanta Rapid Transit Authority (MARTA) is planning to sell $300 million in revenue bonds on June 5 in order to fund capital improvements and refinance short-term loans. Capital improvements include $100 million for new rail signal systems and a new facility for paratransit vehicles.
This bond issue is possible because of MARTA’s reserves, which have reached about $162 million. The transit agency was able to rebuild reserves due to a $9 million surplus in 2013, the first surplus since 2006. A similar surplus level is expected this year.
The bonds up for sale next month have not been rated. They will be repaid with proceeds from a one percent sales tax in three jurisdictions.