Santa Clara County supervisors this week unanimously passed a
resolution that calls on the Valley Transportation Authority board
of directors to restrict its use of advancing 2000 Measure A sales
tax funds
Santa Clara County supervisors this week unanimously passed a resolution that calls on the Valley Transportation Authority board of directors to restrict its use of advancing 2000 Measure A sales tax funds to only mitigating further reductions in transit service until a new revenue source is identified or 2000 Measure A sales tax revenue becomes available in April 2006.
Supervisors support limited borrowing to address the immediate VTA cash flow problems, but disapproves of borrowing to initiate any other Measure A project.
“We are concerned that the mood is to go forward with the BART extension at all costs,” said Blanca Alvarado, board chairwoman. “This approach threatens to decimate the bus and light rail systems desperately needed by county residents.”
This action by supervisors is in response to a proposal under consideration by VTA that would include borrowing up to $550 million that would be repaid with 2000 Measure A sales taxes.
The $550 million would cover the following expenses:
• Operating costs associated with deferral of service reductions – $80 million
• Retirement of 2002 grant and bond anticipation note for Fremont-South Bay Right of Way purchased from Union Pacific Railroad – $82 million
• Net capitalized interest expense, cost of issuance, potential debt service fund -$92.5 million
• Accelerated reimbursement of some of the repayment obligation -$65 million
• Preliminary Engineering – BART to San Jose extension – $170 million
• Other projects determined by the Board – $60.5 million (estimate)
The county’s resolution supports the development of legislation or an initiative to lower voter thresholds for local transportation measures.
The resolution also asks VTA’s Ad Hoc Financial Stability Committee, chaired by South Valley Supervisor Don Gage, to examine the advisability of extending the Measure A sales tax by at least 15 years and to re-evaluate the current Measure A expenditure plan. That would postpone spending the $170 million for preliminary engineering and any new projects ($60.5 million).
“There are many people in Santa Clara County who depend on VTA to get to work. These are people who don’t have any other choice,” said Gage, referring to the days when transit service was not reliable. “If we lose their confidence and trust in the system, that will be very difficult to overcome.”
“VTA has structural budget problems,” said Supervisor Jim Beall, District 4. “They have used one time funds to finance ongoing operations, instead of making necessary reductions. There is a need for more fiscal analysis and planning.”
Prior action of the VTA Board and its Ad Hoc Financial Stability Committee restricted the commitment of Measure A dollars for capital projects until operating and maintenance funds can be identified. The county’s resolution is consistent with those prior guidelines.
“Undoubtedly BART will go forward,” Alvarado said. “It may be more fiscally prudent to push the planning out to a later date until VTA can stabilize its core services.”
