LOS ANGELES -- The San Francisco Parking Authority next month is scheduled to sell $25 million of revenue bonds secured solely by money collected at the city's 20,000 parking meters, Moody's Investors Service said.
Moody's gave the bonds an A rating Monday, based on annual meter revenue of more than $12.7 millionan amount six times the projected level of peak annual debt service payments.
Proceeds of the bonds will fund several parking-related projects, including the construction of a new 800space parking garage for San Francisco General Hospital.
The unusual financing is the first transaction rated by Moody's that is secured solely by parking meter revenues, said Nikolai J. Sklaroff, a Moody's assistant vice president.
"We've never rated one like this before," Sklaroff said, "and, in fact, I don't know if it's ever been done before.
The large number of meters dispersed throughout the city was an important concem in determining the upper medium grade, Sklaroff said.
Moody' s believes that the meter system's strengths outweigh any risk that the meters could be stolen, vandalized, or otherwise damaged.
The city's role as a regional employment center and popular tourist attraction, combined with a large number of cars, creates an unusually high level of parking demand, the release said.
In addition, Moody's said that the city's promotion of public transit has constrained the supply of parking.
The Parking Authority plans to issue the bonds on Dec. 6, through a competitive sale.
"We are optimistic about the sale," said Kevin Hagerty, parking authority director. "In this type of market, we need to look at innovative ways to finance projects, and this is one that we feel is workable."
