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SFCTA authorizes up to $60 million borrowing under revolving credit agreement with U.S. Bank
Summary
The board authorized borrowing up to $60 million under the amended and restated revolving credit agreement with U.S. Bank National Association, a short-term financing facility SFCTA may draw as soon as November 2025 to meet capital cashflow needs.
The San Francisco County Transportation Authority on Oct. 7 authorized borrowing of up to $60 million under its amended and restated $185 million revolving credit agreement with U.S. Bank National Association.
Cynthia Fong, deputy director for finance and administration, said the authority previously entered into the three-year $185 million revolver and has previously drawn down funds to support Muni light-rail vehicle purchases. Staff recommended setting the borrowing limit at $60 million and noted the authority may draw those proceeds as soon as November 2025 to fund near-term capital expenditures.
Fong listed potential uses including SFMTA motor coach procurement and BART next-generation fare gates and core fleet vehicles, and said the current cost to borrow is about 3.18 percent. She said the financing costs are already budgeted in the SFCTA fiscal year 2025–26 budget and that the revolver has helped manage peak expenditures while minimizing financing costs.
After public comment and no substantive questions from commissioners, the board moved and approved the authorization. The item was presented as an action to provide flexibility for upcoming capital cashflow needs.
