San Francisco Bay Area Rapid Transit District, CA –Sales Tax Surveillance Report

Rating Summary

The rating affirmation reflects the San Francisco Bay Area Rapid Transit District’s (“BART” or the “District”) gross revenue pledge with collections by the California Department of Tax and Fee Administration (“CDTFA”)¹ , the broad sales tax revenue base, historically strong and resilient sales tax revenues, with ample debt service coverage (“DSC”) on a historic and proforma basis for the senior and junior lien sales tax revenue obligations. The ratings further recognize the underlying strength of the economy of the three counties within the BART District, which benefit from high wealth levels and a diverse commercial/industrial base. Offsetting these strengths is the inherent nature of sales tax revenues which can be affected by adverse economic conditions, and the potential, although unlikely, for legislative change that could negatively impact the breadth or extent of the sales tax levy.

The junior lien sales tax revenue obligations…