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November 24, 1975 Request

Question 11.

Questions on the Budget

Submit an identical schedule of interstate highway funds transferred
prior to escalation and escalated amounts for the balance of the
$476 million.

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Question 11. To date, only $286.6 million of the $476.0 million in "highway fund transfers" have been transferred to the Authority. Provide breakdown of funds to be transferred and those already transferred.

Answer. For the first increment of Interstate Highway Funds of $286.6 million, the source of Federal Highway Funds was from deletion of the I-708 and a portion of I-95 D.C. Highway Projects.

Question 12. When and under what conditions does the Authority expect to receive the second phase of Interstate Highway transfer funds which the District of Columbia is withholding?

Answer. It is hoped that the Authority will receive the second phase of interstate highway funds before May 1976. Agreement is being worked upon presently as to the extent of participation by the jurisdictions of Maryland and Virginia with the District in making available substituted highway funds for Metro construction.

November 24, 1975 Request

Local Jurisdictions

Question 1: Please provide any studies done by the Authority on regional taxes.

See attached.

3:30 p.m. January 30, 1976

Revised February 4, 1976

AIRLIE WORKSHOP XII

Summary of Financial Impact On
Jurisdictions-Five Year Program

Problems Bearing On A

Supplemental Financial Plan

The proceedings of the last two days provides us

with the facts to understand the causes and the magnitude of the changes which have occurred in the financial posture of the Metro project since the initial plan for financing was adopted in 1969. That plan was designed to finance only rail construction and operations since it was the contemplated that the bus service would continue to be provided by the private carriers. The capital costs for acquisition of the private bus companies, the upgrading and expansion of the bus fleet and related facilities and the Metrobus operation have been superimposed on the original financial plan. Moreover, the original plan has been eroded by unprecedented and un

expected inflation which has been compounded by delays

from a variety of causes.

It was recognized from the outset of the transit project that as the development of the system progressed, supplemental financing arrangements would be required. This is an inevitable consequence of the fact that the project is to be constructed over a decade, that initial cost estimates necessarily are based on preliminary engineering data and that estimates of operating costs necessarily had to anticipate future conditions some The Capital Contributions and Guaranty Agreement, which implements the Financial Plan and Program adopted November 1969, recognized "that definitive net project costs for the transit system will not be determined until the transit system is completed and that, accordingly, Capital Contributions provided for

years ahead.

herein are based on estimates."

In order to assure the

availability of necessary funds the Capital Contributions Agreement provides for recomputation and re-allocation of costs among Political Subdivisions five years after the

start of construction and from time to time thereafter

at least at two-year intervals. The prescience which foresaw the need for rolling adjustments could not fore

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