we have aa credit, and our ratings were affirmed by both moody's and s&p, and as i'm sure you're aware, rates are extremely low right now. i'm sure that sfmta would not have another opportunity to take advantage of these rates, and i think you know over the past week treasury rates have gone up slightly, so we want to do this transaction in the same window as our refunding, but we also want to move quickly in case rates go up, so again, we wanted to secure those low rates so we can pay the lowest cost possible on this debt. you'll see in this package that what we're requesting is the option to issue up to 300 million, but what the proposition lists is 287 million, and the reason for the discrepancy is when we initially brought this to our board of supervisors, we conducted a rough order of magnitude analysis. we knew that this was something we wanted to move ahead with, but we needed to do some initial analysis of our capital plan to get some idea of what projects to fund and where we could get some capital into the budget. with that, we decided that 287 was the amount that we wanted t

we are rated by s&p and moody's with investor rated debt. one of the drivers of this transaction is market rates are currently at historic lows, and so the m.t.a. can procure savings that would go back to our operating budget in f.y. 21 and f.y. 22. so the near term savings up to 23 would be up to $43 million and that's a combination of our release of our debt service fund, which i'll go into on the next slide as well as principal and interest releases for debt that we would be paying in the current fiscal year. so that's the short-term, and in the long-term, we're looking at $21 million in net present-value savings through 2024, so that's over the life of the bond. what we're proposing here is to refinance the debt at a lower cost than we are currently incurring, and also, we will not be expending the term of the bond, so you can think about this as refinancing your house so you can secure a lower interest rate and monthly savings. right now, we're projecting $62.8 million deficit in f.y. 22, and the last point is to simply say if market co

we are rated by s&p and moody's with investor rated debt. one of the drivers of this transaction is market rates are currently at historic lows, and so the m.t.a. can procure savings that would go back to our operating budget in f.y. 21 and f.y. 22. so the near term savings up to 23 would be up to $43 million and that's a combination of our release of our debt service fund, which i'll go into on the next slide as well as principal and interest releases for debt that we would be paying in the current fiscal year. so that's the short-term, and in the long-term, we're looking at $21 million in net present-value savings through 2024, so that's over the life of the bond. what we're proposing here is to refinance the debt at a lower cost than we are currently incurring, and also, we will not be expending the term of the bond, so you can think about this as refinancing your house so you can secure a lower interest rate and monthly savings. right now, we're projecting $62.8 million deficit in f.y. 22, and the last point is to simply say if market co