Miami-Dade County, Florida, is getting set to sell almost $480 million of revenue bonds this week to fund some of its transit infrastructure needs.

The $479.735 million of Series 2022 transit system sales surtax revenue bonds will go out for bids at 10:30 a.m., ET, on Tuesday.

PFM Financial Advisors is the financial advisor. Squire Patton and D Seaton & Associates are the bond counsel.

Proceeds will be used to pay for costs associated with various transit projects in the county, make a deposit to the reserve account and fund capitalized interest.

The deal is rated AA by S&P Global Ratings and Fitch Ratings. Both agencies have a stable outlook on the credit.

“The current offering represents a continuation of investments that the county has been making in the transit system,” Michael Rinaldi, head of U.S. local government ratings at Fitch Ratings, told The Bond Buyer.

The AA rating on the transit system sales surtax revenue bonds “reflects the solid coverage cushion and resilience against risk to revenue decline through future economic cycles,” Fitch said. “The rating also reflects the historically solid rate and favorable prospects of continued pledged revenue growth.”

The transit system sales surtax revenue bonds are backed by a first lien on revenues from a one-half-cent sales surtax levied countywide and also backed by a debt service reserve fund equal to maximum annual debt service.

“Funding transit initiatives in Miami-Dade is certainly nothing new,” Rinaldi said. “It’s been one of the county’s key policy initiatives, reinforcing its investments in mass transit and checking off the policy boxes, namely to reduce carbon emissions, increase mobility equity and to promote transit-oriented development.”

Fitch recently affirmed the county’s issuer default rating, public health trust program general obligation bonds and transit system sales surtax revenue bonds at AA and the public facilities revenue bonds for the Jackson Health System and seaport subordinate lien revenue bonds at AA-minus. Fitch has a stable outlook on the county.

The county is rated Aa2 by Moody’s Investors Service and AA by S&P, both of which have stable outlooks on the credit.

In its report, Fitch said its IDR rating reflects the expectation the county will maintain an adequate level of fundamental financial flexibility through economic cycles.

“This assumption is supported by the county’s high revenue raising authority, more moderate capacity to adjust spending from both a legal and practical perspective, and stabilized operating stability and fund balance position,” Fitch said. “Credit risks center on the county’s economic and revenue exposure to discretionary spending activity, a real estate market with a volatile track record, and pressures from a significant capital plan.”

Since 2011, the county has sold more than $20 billion of debt, with the most issuance occurring in 2020 when it sold $2.97 billion of debt.

Miami-Dade is one of the largest counties in the United States with a population of about 2.7 million in 2021, which is 12% of the state’s residents. It is also the main driver of the southeast Florida economy with an above-average concentration in the trade, transportation and utilities, professional and business services and leisure and hospitality sectors relative to the rest of the U.S.

The county ended fiscal 2021 on Sept. 30 with a general fund surplus of $19.4 million and an unrestricted fund balance of $400.3 million or 14.6% of spending.

Mayor Daniella Levine Cava unveiled a proposed $9.3 billion fiscal 2022-2023 budget last month, which included a 1% property tax cut.

The five biggest taxpayers in the county are Florida Power & Light Co., Bal Harbour Ships LLC, Aventura Mall Venture, SDG Dadeland Associates Inc. and The Graham Companies.

The proposed fiscal 2023 budget forecasts an improved five-year financial outlook and surplus operating results through fiscal 2028.

The financial outlook forecasts increased contributions for transit operations as well as targeted service increases, which can be adjusted if revenue growth declines.

The proposed budget also appropriates the rest of the $178.6 million of American Rescue Plan Act money, which will go mostly to one-time expenditures, such as affordable housing investment and an environmentally endangered land purchase.

The county was last in the competitive market on Aug. 2 when it sold $88.06 million of Series 2022A capital asset acquisition special obligation bonds. Morgan Stanley won the deal with a TIC of 3.8784%.

PFM Financial Advisors was the financial advisor. Greenberg Traurig and Edwards & Feanny were the bond counsel. U.S. Bank Trust Co. was the paying agent. The deal was rated Aa3 by Moody’s and AA by S&P.  Both ratings agencies have stable outlooks on the credit.

Proceeds will be used to fund the costs of the acquisition, construction, improvement and renovation of the various capital projects.