North Texas Tollway panel calls for 32% toll hike to 14.5c/mile (9c/km)

A finance committee at North Texas Tollway (NTTA) voted today 4 to 1 for a 32% hike in toll rates, presently averaging 11c/mile (6.8c/km) to go to 14.5c/mile (9c/km) on Sept 1. The full NTTA  board will consider the proposal at their regular meeting July 16.

Tolls were last increased in September 2007. Then toll rates rose 16.7% for transponder users at major toll points and a third for cash, probably about 18% overall.

The toll increases proposed for this September would be on the Tollway Authority's two established tollroads - the Dallas North Tollway and President George Bush Turnpike. 121 Toll or Sam Rayburn Tollway rates are already at 14.5c/mile (9c/km) and would not be changed. Tolls at the smaller facilities - two toll bridges and the Addison Airport tunnel would also remain the same.

Under the panel's proposal toll rates would be adjusted every second July at 2.75%/year compounded on the Dallas North Tollway and Bush Turnpike. On the Eastern Extension of the Bush they would rise 3%/year.

Renegotiation of concession agremeent on 121 proposed

The finance committee recommends a negotiated amendment to the Sam Rayburn Tollway 121 project agreement or public concession between the NTTA and TxDOT and the regional council of governments. This amendment would provide for tolls on the 121 to be raised at a fixed annual 2.75% rate.

NTTA's chief financial officer Janice Davis is quoted as saying that the toll increases are needed to sustain the authority's financial situation in the face of declining traffic - down 4% so far this year v same period in 2008.

The higher toll rates are necessary, she says, to protect NTTA's investment grade credit rating with the credit rating agencies. NTTA took on $3b debt to gain the 121 concession from Cintra, and some of that debt has to be refinanced. If the authority is downrated borrowing costs are liable to be much higher.

NTTA debt service costs, just over $200m in 2008, rise to about $295m this year, according to the NTTA 2008 annual report.

Toll revenue last year was $245m and at present toll rates would decline by about $10m this year. Operating expenses in 2008 were $138m so cash flow was $109m.

The annual report highlights the 2008 shortfall in revenue as compared to WSA estimates - noting actual revenue was 8.2% below WSA's forecast (although the graph nearby makes the difference look larger).

Budgeted toll revenues for 2008 were $267.1m and actual tolls were $240.8m, a shortfall of $26.4m or nearly 10%.

"Challenging times"

Davis, who under current circumstances needs a more somber official picture (see nearby) is quoted: "In these challenging times, the rating agencies want to see proof that NTTA’s Board is committed to the maintenance of the Authority’s financial strength and integrity. NTTA has already imposed some tough cost-cutting moves for this fiscal year, and the only other way to further increase financial capacity is through a toll rate increase."

The statement insists that NTTA "intends to continue to meet its regional commitments on the Eastern Extension of the Bush Turnpike and the Lewisville Lake Toll Bridge, to complete the Sam Rayburn Tollway, and to support projects such as SH 161 and Southwest Parkway/Chisholm Trail."

Trinity Parkway which is subject to new geotechnical studies at the behest of the army corps of engineers is not listed.  Nor are northern phases of the Dallas North Tollway.

New T&R report due

A new traffic and revenue study for the NTTA system is under way and due for release "later this summer."

Speed limits to be 70mph

In another development posted speed limits are likely be raised to 70mph (113km/hr) over most of the NTTA network.

Staff are recommending this to the board based on a speed survey showing 85% of drivers on the NTTA tollroads already drives at 70mph or more.

Only exception would be the oldest and tight segment of the DNT just north of the Dallas central business distict where the posted speed would be 65mph (105km/hr).

These are increases on present posted limits of 10mph (16km/hr).

TOLLROADSnews 2009-07-08