CONTACT: Eric Young (SFCTA) 415-522-4816 office; 415-306-4509 cell; firstname.lastname@example.org
The San Francisco County Transportation Authority has maintained the highest possible rating of AAA by Fitch Ratings for $235.3 million in senior sales tax revenue bonds. This AAA rating places the Transportation Authority among the highest rated organizations in California. The rating reflects the agency’s strong and resilient maintenance of the voter-approved half-cent sales tax for transportation and stable outlook.
Despite the economic downturn and decreased sales tax revenues caused by the COVID pandemic, Fitch Ratings evaluated several key elements to determine the rating. These include the size and diversity of the economic base that generates San Francisco’s half-cent sales tax for transportation, as well as the agency’s stable management, high coverage ratios, and minimal long-term liabilities.
“This rating should give San Franciscans confidence that their Transportation Authority is a sound steward of the tax revenue the voters entrust to us,” said District 8 Supervisor Rafael Mandelman, who serves as Chair of the Transportation Authority Board. “As we go forward to secure future lines of credit, this will allow the agency to minimize the cost of borrowing and maximize proceeds for the benefit of taxpayers and the public.”
Fitch Ratings identified that long-term economic growth is expected to recover for the city and this outlook affirms the resiliency and performance of the Transportation Authority’s management of revenues and expenditures for the half-cent sales tax for transportation.
The bonds are part of the agency’s overall financial strategy to advance half-cent sales tax project delivery and allow benefits to the public to be realized sooner than would otherwise be possible. The Transportation Authority has overseen bond proceeds, plus interest earned, to support projects such as:
- Muni bus, trolley, and light rail vehicle purchases
- Muni Central Control and communications systems
- New and upgraded traffic signals
- Central Subway
- Salesforce Transit Center
Last year, the Transportation Authority also earned a Certificate of Achievement from the Government Finance Officers Association, the highest form of recognition in governmental accounting and financial reporting. This was the third consecutive year the agency earned the certificate, underscoring the Transportation Authority’s commitment to outstanding stewardship of taxpayer dollars.
The Transportation Authority has managed San Francisco’s transportation sales tax for 30 years, helping to deliver generations of major capital projects, as well as neighborhood-scale pedestrian, bicycle, transit, and repaving improvements citywide.
About the San Francisco County Transportation Authority (sfcta.org)
The San Francisco County Transportation Authority’s mission is to make travel safer, healthier, and easier for all. We plan, fund, and deliver local and regional projects to improve travel choices for residents, commuters, and visitors throughout the city. The Transportation Authority Board consists of the 11 members of the San Francisco Board of Supervisors, who act as Transportation Authority Board Members. Board Member Rafael Mandelman is Chair of the Board. Tilly Chang is the Transportation Authority’s Executive Director.