TOTAL ROAD IMPROVEMENT PROGRAMS (TRIP)
Overview
The deterioration of streets and highways is a critical issue facing California. According to Surface Transportation Policy Project calculations, the backlog of pavement repair costs in California currently exceeds $10.5 billion. Over time, the cost to repair a street dramatically increases as its condition degrades, turning minor maintenance projects into major reconstruction projects. There is a huge opportunity for substantial savings by funding street maintenance and improvement projects early.
CSCDA offers a pooled securitization program to assist local agencies in bonding against future payments to obtain funding for more projects today. As a pooled public offering, program participants will benefit from reduced issuance costs and better interest rates as compared to stand alone issues. The program does not require a pledge of the local agency’s General Fund.
The Gas Tax Accelerated Street Improvement Program will allow local governments to leverage their State Motor Vehicle Fuel Tax (the “Gas Excise Tax”) to finance road improvement projects. The use of proceeds from the Gas Excise Tax, an 18-cent State excise tax collected on fuel sales, is restricted to the maintenance and construction of public streets and highways. The obligations will be secured solely by a pledge of Gas Excise Tax revenues of the participating agencies.
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