Tools & Programs:
Federal Debt Financing Tools
Grant Anticipation Revenue Vehicles (GARVEEs)
The following is a brief summary of GARVEE transactions in 2013.
- Three GARVEE transactions in the State of Mississippi took place to refund the remaining balances on prior issuances. A 2005 issuance for highway projects in the Harrison County was refunded with $64.13 million in GARVEEs, a 2005 issuance for highway projects in the City of Laurel was refunded with $20.82 million in GARVEEs, and a 2006 issuance for highway projects in Madison County was refunded with $88.87 million in GARVEEs.
- The Commonwealth of Kentucky issued $212.55 million in GARVEEs for the design, development, and construction of the new Ohio River Bridges Downtown Crossing, a new northbound crossing of I-65 over the Ohio River between Louisville, Kentucky and Southern Indiana, currently under development as a design-build project with traditional and toll financing.
- Washington State issued its second-ever set of GARVEEs to continue funding the SR 520 Floating Bridge project in the Seattle region. The issuance of $285.92 million follows May 2012's offering of $500.4 million to help finance the $2.7 billion project that is replacing the existing floating bridge across Lake Washington connecting Seattle with Bellevue and Redmond. As with the previous GARVEE issuance, the bonds are "Triple Pledge Bonds," which are general obligation bonds backed first by toll revenue from the existing floating bridge, second by motor fuel taxes, and third by general state revenues.
- The State of Arkansas issued $177.47 million in GARVEEs, the second of three series approved by voters in 2011 that total $575 million. As with the first series issued in September 2012, the bonds are backed by federal highway funds and a portion of the state excise tax on diesel fuel. They were issued as General Obligation bonds and are further backed by the full faith and credit of the state. The proceeds help to finance state highway rehabilitation and upgrade projects in conjunction with the Connecting Arkansas Program approved by voters in 2012 that dedicates a 0.5 percentage point increase in the state sales tax over 10 years to state, county, and city highway projects.