Modifying Measure A’s Borrowing Limit

July 14, 2010

Measure A Legal Details

Comparing the Limits

• $180 million of debt limit utilized

• Delivery Plan restructured

• Numerous projects nearing construction

• Favorable interest rates & bids

• Opportunity to create jobs

Current Situation

GOAL: Increase limit to provide flexibility without sacrificing prudence or oversight

• $975 million limit – slightly less than 25% of projected revenue total

• Higher limit does not result in immediate action – Commission approval of all financings are maintained

Proposal

• RCTC must reimburse county

• 2002 cost was $372,000

• Election costs are Measure A eligible

• Private sector financed campaign still needed

Costs

• Communicate ballot measure to Supervisors

• Obtain vote from Supervisors - July 27 or at special meeting

• Seek voter approval in November

Next Steps