FOR 1984

HEARINGS

BEFORE A

SUBCOMMITTEE OF THE

COMMITTEE ON APPROPRIATIONS

HOUSE OF REPRESENTATIVES

NINETY-EIGHTH CONGRESS

FIRST SESSION

COMMITTEE ON APPROPRIATIONS

JAMIE L. WHITTEN, Mississippi, Chairman

KEITH F. MAINLAND, Clerk and Staff Director

FISCAL YEAR 1984

WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY

WITNESSES

AUTHORITY THOMAS M. DOWNS, DIRECTOR OF PUBLIC WORKS AND TRANSPORTATION, AND BOARD MEMBER, WASHINGTON METROPOLITAN AREA TRANSIT

COMPTROLLER

THOMAS SLIGH, DIRECTOR, OFFICE OF PROGRAM CONTROL
ECKHARD BENNEWITZ, DIRECTOR, OFFICE OF BUDGET AND MANAGE-
WILLIAM BOLEYN, ASSISTANT GENERAL MANAGER FOR FINANCE AND

MENT ANALYSIS

MONDAY, MAY 23, 1983.

The Authority has sold $997 million in bonds for the rail construction pro-
gram as authorized by the National Capital Transportation Act of 1972. The
Authority, the District of Columbia, Maryland, Virginia, and the Secretary
of Transportation have executed an Ancillary Bond Repayment Participation
Agreement which specifies the funding requirements from all parties for the
payment of interest and principal on these bonds. The Agreement will pro-
vide for an overall 2/3 Federal and 1/3 Local cost sharing arrangement, with
continuation of the current sharing arrangement in the early years, subject
to WMATA repayment at a later date.

$77,300,000, of which $27,484,194 will be ATA's cost. The District of
The bond interest payments due January 2, 1984, and July 1, 1984, will total
Columbia will be required to fund $10,331,308 of interest and principal on
the Authority's bonds.

The procedure for payment proposed by UNTA would require that one-half of
the semiannual payment be placed into a bond interest fund six months prior
to the date bond interest is due with the balance of the payment on deposit
three months prior to the due date. Shown below are the total MMATA costs
during FY 1984 and the District's share.

District of
Columbfo

$ 2,422,581

6,444,750
852,597

2,422,582
320,491
2,422,581

RAIL CONSTRUCTION MANAGEMENT (40)

2

CONT O

The Authority incurs administrative and supervisory costs in its efforts to
construct the rapid rail system. Much of this cost is funded through the
various rail grant programs; however, planning and grant application ex-
penses are not eligible for Federal reimbursement. The estimated cost to the
District for rail construction management is $301,000.

D.C. SINKING FUND (60)

On January 1, 1993, the District of Columbia will be required to make a
balloon payment of $53,668,623 to reimburse accelerated Federal funds and

interest from prior years. To make provisions for the above payment, the
District has established the Metro Debt Service Sinking Fund (210). The
General Fund contribution appropriated in this budget will be transferred
to the Metro Debt Service Sinking Fund.

Apr11 1, 1984

6,444,750