Sou outh C Carol olina T Transportation Infrastructure B Bank
Introduction to the SCTIB* • South Carolina Transportation Infrastructure Bank Act was signed on June 26, 1997 • Purpose of Act: To focus greater attention on larger transportation projects, and thereby allow South Carolina Department of Transportation (SCDOT) to devote resources to maintenance of the existing state highway system and other important transportation projects • Purpose of Bank: To select and assist in financing major qualified projects (exceeding $100 M; reduced to $25 M by Act 275 of 2016) by providing loans and other financial assistance ... for constructing and improving highway and transportation facilities necessary for public purposes including economic development • The Bank has been a catalyst for $5.9 billion in highway and bridge construction in South Carolina. This $5.9 billion in transportation infrastructure includes over 100 projects in 29 counties and 5 municipalities. • Bond Rating - On September 26, 2019, Moody's Investors Service upgraded the Bank's revenue bonds to Aa3 from A1, affecting $1.48 billion of debt outstanding, and the outlook is stable. The credit opinion released on October 8, 2019, states, “ The Aa3 revenue bond rating is supported by a history of oversight from the State of South Carolina (Aaa, stable), which relies on the SCTIB to finance large road and bridge projects. The state consistently has allocated additional financial resources to SCTIB, both to ensure adequate debt service coverage for the revenue bonds and to help fund projects. SCTIB's recent upgrade was driven largely by our expectation the state will keep providing such support, while avoiding actions that materially erode the ratio of pledged revenue to debt service, indicating a closer credit alignment between the SCTIB and its parent government.” • Staff and Management: Management Efficiency: To date administrative expenses have historically been less than 1% of the total annual expenditures by limiting the number of staff and by outsourcing. - Seven Member Board of Directors: - Two members appointed by the Governor with one of those being the Chairperson - Two members appointed by the Speaker of the House with one being a Representative - Two members appointed by the President of the Senate with one being a Senator - One member being the Chairman of the SCDOT Commission Currently three (3) full-time staff members *This presentation focuses primarily on the Original Act, prior to amendments made in Act 275 of 2016 and Act 40 of 2017 described on page 10. 08/20/2019 2
SCTIB Funded Projects Florence County Project York County Project Horry County RIDE Projects Greenville County Project Lexington County Project Charleston County Project Aiken County Project Beaufort County Project 08/20/2019 3 DorchesterCounty Project
Project Selection & Criteria • Evaluation Committee • Selection Process Includes Application Eligibility Requirements and Grading 3 members of SCTIB Board / 1 member from SCDOT - by Evaluation Committee Committee visits with local officials, engineers and consults with SCDOT. - • Committee also personally inspects each project and grades every Eligibility – Must be a major project ($25 million or more) that provides application public benefit in one or more of the following areas: • Major evaluation criteria Public Benefit – 50 points - Improve general Financial Plan – 50 points - Promote economic Enhance public Improve quality of Enhance mobility welfare of the development safety life public • The SCTIB Act requires the Board to give preference to eligible projects which have local financial support. • Application Process In excess of $50 million: the amount of the local contribution must be o Applications are to describe the project in detail including the scope, - at least 25% of the total project costs and the application may receive benefits, financing components and eligibility for financial assistance. 10 points for each increase in the local contribution of 5% of the total project costs up to a maximum of 50 points. Applications are to contain maps with traffic volumes, engineering data, - supporting letters from all local governments, state agencies, etc. Equal or less than $50 million: the amount of the local contribution o Applications must provide the ranking and scoring from SCDOT, MPO or must be at least 15% of the total project costs and the application - COG on the project done as part of the program categories Long Range may receive 10 points for each increase in the local contribution of Plan. If the project cumulative score is not based on a 0-100% scale, the 5% of the total project costs up to a maximum of 50 points. scale will be converted to equate to a 0-100% to have all application submittals on the same scale. Upon receipt, the SCTIB Board determines if the project is eligible under - the SCTIB Act, Act 114 and Board policies, and if so refers the application to the Evaluation Committee. 08/20/2019 4
Approved SCTIB Financial Assistance Current Projects Approved by the Bank for Funding ($ in millions) Completed Projects ($ in millions) Amount Paid Total SCTIB Total SCTIB Project to 6/30/2019 Contributions Project Contributions Charleston County Mark Clark* $420 $42 Aiken County $208 Florence County 309 270 Beaufort County 65 Horry County 2007 Program 225 174 Charleston County 325 City of Aiken - Various Widenings 6.2 0 Horry County Ride 383 Dorchester County-Various widenings 23 17 Jasper /Hardeeville Exit 3 3.9 Dorchester County-Berlin Myers 30 0 Lexington County 48 City of Charleston Septima Clark 88 26 Median Barrier 30 Total $1,132 $508 SCDOT Statewide Bridge 12 * SCTIB, Charleston County and SCDOT entered into an Amended Intergovernmental Agreement dated January 10, 2019, and on June Upstate GRID 406 4, 2019, the Joint Bond Review Committee took action to authorize a $12 million dollar commitment from the Bank and a matching $12 million dollar commitment from the County to fund the remaining preliminary work reflected in the amended agreement. York County 176.8 Berkeley County 8.5 Project Funding Sources to Date Beaufort County SC 170 24.9 Berkeley County Sheep 21.5 Mount Pleasant 57.41 SCTIB Revenue Bonds U.S. 17 Widening 102 44% 54% Total $1,872 State General Obligation Bonds for SCTIB SCTIB Highway Fund 2% 08/20/2019 5
SCTIB Master Revenue Bond Resolution Pledged Revenues Bond Flow of Revenues 1. 1 System Payments, include portions of 4 streams of annually recurring revenues Senior Lien Debt Service 1 allocated to the Bank: Fund System Truck Registration Fees and Penalties Motor Vehicle Registration Fees and Penalties Principal Account Payments Pledged Electric Power Funds Interest Account State Highway Funds Revenue 2 Fund Debt Service Reserve Account Series Payments 2. Series Payments include revenues received pursuant to certain loan agreements, 2 including: Junior Lien Debt Service 1. SCDOT Cooper River Bridge Fund 2. SCDOT Multi Project Funding Agreement The two largest 3. SCDOT US 17 Project Payment Principal Account components of the Interest Account Pledged Revenues are Debt Service Reserve Account System Payments and FY2018 Pledged Revenues Series Payments FY2018 Pledged Revenue Stabilization Fund* Revenues were Series Payments approximately $207.3 System 26.3% Payments * The Revenue Stabilization Fund is established to ensure a proper Investment million, including $152.1 73.4% Projects Fund matching, over time, of System Payments and Annual Net Debt Earnings Service. The State Treasurer shall monitor the historical receipt of million of System 0.3% Truck Registration Fees (“TRF”) and penalties in determining (i) the Payments and $54.4 amount of any required deposit into the RSF, or (ii) the amount of any available transfer from the RSF to the Pledged Revenue Fund. million of Series General Reserve Fund Payments 08/20/2019 6
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