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Caltrain partner seeks bonds and credit increases to fund electrification and property purchases; committee recommends approval
Summary
The committee recommended approval for a financing plan from the Peninsula Corridor Joint Powers Board to refund farebox revenue bonds, issue new fixed‑rate bonds (up to $62M), increase a credit facility to $170M and create a new $30M facility to fund electrification, real property acquisition and Positive Train Control shortfalls.
Derek Hansel, chief financial officer for the Peninsula Corridor Joint Powers Board (JPB), told the Budget and Finance Committee the agency is seeking San Francisco approval for a multi‑part financing plan to support Caltrain electrification and related needs.
Hansel said the JPB proposes issuing new fixed‑rate farebox revenue bonds (not to exceed $62 million aggregate principal) to refund existing series for debt service savings and to fund real property acquisition (up to $23 million) of sites the JPB currently leases. "The debt service savings that we expect...is up to somewhere in the neighborhood of $3,900,000 on a present value basis," he said.
The plan also seeks to increase the JPB’s existing credit facility with JPMorgan from $150 million to $170 million to provide flexibility to match a state transit grant for additional electric multiple units, and to establish a new $30 million credit facility for working capital and to address a shortfall for federally mandated Positive Train Control (PTC). Hansel said PTC remains a federal requirement and the agency has a remaining funding gap after other reprogrammed grants and new federal funding.
A public commenter asked the JPB to ensure disabled and low‑income riders benefit from transit policy; Hansel said the agency is considering a fair policy and may return to boards in November. The committee approved the financing plan with a positive recommendation and as a committee report to the full Board.
