Alameda Corridor Adopts Balanced Budget; Project On Time and On Budget


JUNE 8, 2000
  LOS ANGELES COUNTY –  The public agency building the Alameda Corridor rail cargo expressway adopted a balanced program budget  beginning July 1, 2000 and ending June 30, 2003 on Thursday, signaling that the project is in strong financial condition.

The Alameda Corridor Transportation Authority (ACTA) budget calls for estimated expenditures of $680 million in the fiscal year that starts July 1. This includes funding to develop a revenue collection system for when the project is completed, two new management positions (assistant director of engineering and internal auditor) to strengthen controls and the Alameda Corridor Conservation Corps program.

The overall program budget's expenditures are expected to increase by $26.5 million to $2.46 billion by the time the project is completed in 2002. The bulk of that increase is a $14.7 million set aside for potential construction claims. Of the $2.46 billion overall budget, expenditures to date are approximately $1 billion, leaving a balance of approximately $1.4 billion.

With the project in full-scale construction, the vast majority of expenditures are for construction work up and down the 20-mile route.

"This is a spending plan that keeps us on track for on-time and on-budget completion of the project in April 2002, while setting aside prudent reserves for unforeseen circumstances," said Long Beach City Councilman Jeffrey A. Kellogg, chairman of the ACTA Governing Board, which adopted the budget Thursday.

Added ACTA Chief Executive Officer James C. Hankla: "We're in an excellent position, with construction proceeding at a quick pace and more than sufficient funds to cover all of our expenses, including a new position to tighten management controls. We are confident that the Corridor project will serve as a model for transportation infrastructure programs throughout the nation."

Chief Financial Officer W. Dean Martin said, "Though ACTA remains intently focused on the completion of the Corridor, management has not lost sight of its fiduciary responsibility to one of its principal stakeholders, those who invested in the revenue bonds being used to build the Corridor. The Program Budget has committed sufficient financial resources to pay debt service during construction and to ensure that systems are in place to collect revenues for debt service upon completion of the Corridor."

The project is fully funded through a unique blend of public and private sources:

  • $1.160 billion in bond proceeds.
  • $400 million loan from the U.S. Department of Transportation.
  • $394 million in grants from the ports.
  • $347 million administered by the Los Angeles County Metropolitan Transportation Authority.
  • $162 million in other state and federal sources and interest income.

Debt will be retired with fees paid by railroads for use of the Alameda Corridor.

ACTA, a partnership between the cities and ports of Long Beach and Los Angeles, is building a 20-mile-long railroad cargo expressway from the ports to the transcontinental rail yards near downtown Los Angeles. The project will speed the flow of cargo and reduce traffic congestion by eliminating conflicts at more than 200 street-level railroad crossings.

 

CONTACTS:
MARIA MORENO (310) 233-7480
BERNIE EVANS (310) 233-7480

 

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