Nancy Young-Oliver, CPA, CPFO, CFE, CISA, Chief Financial Officer
TriMet
TriMet
TriMet issues long-term debt to provide funds to finance a portion of the capital costs of its system. TriMet's outstanding debt series include senior lien payroll tax revenue bonds and capital grant receipt revenue bonds.
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TriMet issues long-term debt to provide funds to finance a portion of the capital costs of its system. TriMet's outstanding debt series include senior lien payroll tax revenue bonds and capital grant receipt revenue bonds.
Senior Lien Payroll Tax Revenue
TriMet has pledged the following revenue streams to pay its senior lien payroll tax revenue bonds:
- Payroll and Self Employment Taxes:
- These taxes are received from certain employers within the district boundaries of TriMet. TriMet’s payroll and self-employment tax rate was initially established by the State of Oregon in 1969 and enacted in 1970.
- The State of Oregon has given TriMet the authority to increase the rate for payroll and self-employment taxes by 1/10th of a percent each year through calendar year 2025. The current tax rate is 0.8237 percent of applicable wages.
- State In-Lieu Payments:
- Under ORS 291.405 the State of Oregon can provide funds to TriMet as reimbursement for the benefit the State receives from TriMet. The rate of is limited to 0.6 percent of the total wages paid to State employees working within the TriMet service area. State in-lieu payments have been made every year since 1983. If the State stops making in-lieu payments, current statutes authorize TriMet to impose payroll taxes directly on the State.
Information concerning TriMet's collection of pledged revenues and annual debt service coverage can be found here.
TriMet's debt policy limits annual senior lien payroll tax debt service to 7.5% of continuing revenues.
TriMet has pledged the following revenue streams to pay its senior lien payroll tax revenue bonds:
- Payroll and Self Employment Taxes:
- These taxes are received from certain employers within the district boundaries of TriMet. TriMet’s payroll and self-employment tax rate was initially established by the State of Oregon in 1969 and enacted in 1970.
- The State of Oregon has given TriMet the authority to increase the rate for payroll and self-employment taxes by 1/10th of a percent each year through calendar year 2025. The current tax rate is 0.8237 percent of applicable wages.
- State In-Lieu Payments:
- Under ORS 291.405 the State of Oregon can provide funds to TriMet as reimbursement for the benefit the State receives from TriMet. The rate of is limited to 0.6 percent of the total wages paid to State employees working within the TriMet service area. State in-lieu payments have been made every year since 1983. If the State stops making in-lieu payments, current statutes authorize TriMet to impose payroll taxes directly on the State.
Information concerning TriMet's collection of pledged revenues and annual debt service coverage can be found here.
TriMet's debt policy limits annual senior lien payroll tax debt service to 7.5% of continuing revenues.
Capital Grant Receipt Revenue
TriMet has pledged the following revenue streams to pay its capital grant receipt revenue revenue bonds:
- Intergovernmental Agreement Receipts:
- Metro, the metropolitan planning organization in the Portland area, has agreed to facilitate TriMet’s receipt of federal grant funds from the Surface Transportation Block Grant program (STBG) and Congestion Mitigation and Air Quality (CMAQ) improvement programs. Intergovernmental agreements (IGAs) between TriMet and Metro specifically provide that Metro's allocation of funds to TriMet has precedence over all other funding allocations in Metro's Metropolitan Transportation Improvement Program.
- Section 5307 Receipts:
- Section 5307 receipts consist of the amounts TriMet receives under the Urbanized Area Formula Program authorized by the United States Code. The Urbanized Area Formula Program is administered by the FTA, and provides for federal capital and operating assistance for mass transportation in urbanized areas. TriMet receives the majority of the Urbanized Area Formula Program funds apportioned to the Portland, OR-WA Urbanized Area.
Information concerning TriMet's collection of pledged revenues and annual debt service coverage can be found here.
TriMet has pledged the following revenue streams to pay its capital grant receipt revenue revenue bonds:
- Intergovernmental Agreement Receipts:
- Metro, the metropolitan planning organization in the Portland area, has agreed to facilitate TriMet’s receipt of federal grant funds from the Surface Transportation Block Grant program (STBG) and Congestion Mitigation and Air Quality (CMAQ) improvement programs. Intergovernmental agreements (IGAs) between TriMet and Metro specifically provide that Metro's allocation of funds to TriMet has precedence over all other funding allocations in Metro's Metropolitan Transportation Improvement Program.
- Section 5307 Receipts:
- Section 5307 receipts consist of the amounts TriMet receives under the Urbanized Area Formula Program authorized by the United States Code. The Urbanized Area Formula Program is administered by the FTA, and provides for federal capital and operating assistance for mass transportation in urbanized areas. TriMet receives the majority of the Urbanized Area Formula Program funds apportioned to the Portland, OR-WA Urbanized Area.
Information concerning TriMet's collection of pledged revenues and annual debt service coverage can be found here.
