Agency’s outlook is stable thanks to community support of Fuel Revenue Indexing (FRI)

Click to Tweet: .@RTCSNV receives Aa3 fuel tax bond rating; outlook stable, thanks to Southern Nevada support of FRI funding

LAS VEGAS – The Regional Transportation Commission of Southern Nevada (RTC) received an Aa3 bond rating for its fuel tax refunding bonds from Moody’s Investor Service.  Moody’s announced on Oct. 12 that despite recent declines due to COVID-19, the agency maintained healthy debt service coverage, which the RTC credits in large part to Fuel Revenue Indexing (FRI) funding passed by voters in 2016.  

FRI is the process of tying motor vehicle fuel tax to inflation to adjust for rising material and labor costs.  The Southern Nevada community voted to extend the funding method for 10 years to provide critical funding for roadway maintenance, improvement and safety projects throughout the valley.  The RTC’s current Capital Improvement Program (CIP) includes more than $2.5 billion in roadway projects over the next 10 years. 

“Thanks to the foresight of our community members, business leaders and elected officials, our community is in a strong financial position when it comes to roadway funding,” said M.J. Maynard, RTC CEO. “Despite the health and economic crisis we have seen this year, we successfully kept all current roadway projects moving forward, and we expect to be able to fund $2.5 billion worth of future projects.”

Moody’s also noted a stable outlook for the agency as Southern Nevada has experienced historically steady fuel demand that is already showing signs of recovery as businesses, including casinos and resorts, reopen.

Visit moodys.com for more information on rating methodologies, key rating assumptions, symbols and definitions.

About the RTC
The RTC is the regional authority overseeing public transit, metropolitan planning, roadway funding, traffic management, and the public bike share system. The RTC’s vision is to advance regionally transformative mobility solutions through equitable, innovative and sustainable infrastructure development. The RTC’s mission is to elevate quality of life for residents and visitors through sustainable planning, collaborative problem-solving, and safe and equitable transportation service. For more information about the RTC and our major initiatives or to download the rideRTC app, visit rtcsnv.com. Stay informed by subscribing to our blog or following us on social media.

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