Principal of and interest on Consolidated Transportation Bonds are payable from the proceeds of certain
excise taxes levied by statute and the corporate income tax credited to the Department less amounts re-
quired for debt service on Maryland Port Authority Loans. These amounts are applicable to the extent neces-
sary for that exclusive purpose before being available for other uses by the Department. If those tax proceeds
become insufficient to meet debt service requirements, other receipts of the Department are available for
that purpose. The holders of such bonds are not entitled to look to other State's resources for payment.
Under the terms of authorizing bond resolutions, additional Consolidated Transportation Bonds may be
issued, provided, among other conditions, that (i) total receipts (excluding federal funds for capital projects,
bond and note proceeds, income received from a sinking fund separately dedicated to the Refunding Bonds,
and other receipts not available for debt service), less administration, operation and maintenance expenses,
for the preceding fiscal year equal at least two times maximum annual debt service on all Consolidated
Transportation Bonds outstanding and to be issued and any then outstanding Maryland Port Authority
loans and that (ii) total proceeds from pledged taxes equal at least two times maximum annual debt service
on all Consolidated Transportation Bonds outstanding and to be issued and any then outstanding Maryland
Port Authority loans.
County Transportation Bonds are issued by the Department and the proceeds are used by participating
counties and Baltimore City to fund local road construction, reconstruction and other transportation projects
and facilities and to provide local participating funds for federally-aided highway projects. Debt service on
these bonds is payable from the counties' and Baltimore City's shares of highway user revenues.
As of June 30, 1981, Transportation bond debt service requirements for sinking fund deposits and prin-
cipal and interest payments (amounts expressed in thousands) in future years were as follows:
|
|
|
Consolidated
|
County
|
|
|
|
Consolidated
Transportation
|
County
Transportation
Bonds
|
Transportation
Bonds
(Principal
|
Transportation
Bonds
^Principal
|
Consolidated
Transportation
Bond
|
Total
Transportation
Bond Debt
|
Years ending
June 30,
|
Sinking Fund
Deposits
|
Sinking Fund
Deposits
|
and
Interest)
|
and
Interest)
|
Anticipation
Notes
|
Service
Requirements
|
1982
|
$39,998
|
$17,831
|
$ 6,769
|
$5,238
|
$63,101
|
$132,937
|
1983
|
39,998
|
17,781
|
6,769
|
7,503
|
|
72,051
|
1984
|
39,998
|
17,314
|
6,769
|
7,483
|
|
71,564
|
1985
|
39,998
|
15,779
|
10,769
|
7,532
|
|
74,078
|
1986
|
39,998
|
15,171
|
11,473
|
7,555
|
|
74,197
|
1987
|
12,671
|
5,466
|
13,188
|
7,534
|
|
38,859
|
1988
|
|
|
13,775
|
7,566
|
|
21,341
|
1989
|
|
|
18,057
|
7,580
|
|
25,637
|
1990
|
|
|
17,226
|
7,589
|
|
24,815
|
1991
|
|
|
16,395
|
7,622
|
|
24,017
|
1992
|
|
|
14,589
|
7,622
|
|
22,211
|
1993
|
|
|
13,806
|
7,630
|
|
21,436
|
1994
|
|
|
13,005
|
7,600
|
|
20,605
|
1995
|
|
|
6,201
|
7,139
|
|
13,340
|
1996
|
|
|
|
7,164
|
|
7,164
|
On February 15 and May 25, 1978 the Department of Transportation issued Consolidated Transporta-
tion Bonds, Refunding Series 1978 and County Transportation Bonds—First Issue Refunding Series.,1978,
respectively. The net proceeds of these issues, after underwriters' discounts and other financing expenses, in
principal amounts aggregating $510,625,000 were used to purchase U.S. Government securities sufficient to
fully provide for the timely payment of $500,585,000 Consolidated Transportation Bonds, State Highway
Construction Bonds and County Transportation Bonds. As a result of these transactions, the refunded bonds
are deemed to be defeased and, accordingly, are no longer reported as long-term debt in the financial state-
ments. These U.S. Government Securities purchased were deposited with the State Treasurer and are ac-
counted for in the Refunded Transportation Debt Expendable Trust Fund. Accordingly, the fund balance has
been reserved for the retirement of refunded debt.
The $60,000,000 Consolidated Transportation Bond Anticipation Notes Series 1980, due July 15, 1981,
were refinanced on July 15, 1981 through the issuance of $60,000,000 of 8.92% Consolidated Transportation
Bond Anticipation Notes, due July 15, 1982.
25
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