Presentation on theme: "1. 2 Thruway Authority Goals The Authority is committed to: Maintaining & operating the highway Implementing capital improvement program to deliver high."— Presentation transcript:
2 Thruway Authority Goals The Authority is committed to: Maintaining & operating the highway Implementing capital improvement program to deliver high levels of safety & service Improving the travelers’ experience
4 Why Tolls In 1989 (Chapter 634), Governor Cuomo and the State Legislature created the Thruway Authority Transition Advisory Council and charged it with the responsibility to "make recommendations concerning the future of the Thruway and the Thruway Authority after the scheduled retirement of the Authority's bondable debt in the year 1996..." The Advisory Council concluded that tolls were the preferable choice because it was more appropriate for those who actually use the Thruway to pay for its maintenance and upkeep rather than the taxpayers of New York generally. Therefore the Advisory Council recommended to the Legislature and the Governor, that tolls be maintained and that the Authority, with its bonding ability, be retained to meet the highway transportation needs along the Thruway corridor.
5 Why Tolls Instead of making the Thruway toll free and turning over operation to DOT, in 1992, the Governor and the State Legislature enacted legislation to further expand the responsibilities of the Authority to include the operation and maintenance of the canal system and authorized additional indebtedness secured by toll revenues to assist with the financing of this new responsibility. Unlike other highways in New York State, the Thruway Authority receives no state tax dollars and depends on tolls to maintain, operate, and police its roads and bridges. Because the Thruway is a toll road, only the people who use it pay for it. In addition, an estimated one-third of the tolls collected are paid by out-of-state drivers who use the Thruway.
10 Summary of Multi-Year Capital Plan 78% of the Thruway Authority’s $2.74 billion Multi-Year Capital Plan is for capital improvements to the system’s highways and bridges $ in millions
11 More than 300 projects in the 2005 -2011 Capital Plan; between 2005 and 2007 the Authority has let 86 projects at a cost of $746 million statewide; more than $1.3 billion statewide remains to be let through 2011 (214 projects remain) 520 miles of new and/or rehabilitated highway 196 new, rehabilitated, or improved bridges 195 additional truck parking spaces 7 additional noise barrier locations 56 additional higher-speed E-ZPass lanes 13 additional highway-speed E-ZPass lanes 6 additional dedicated E-ZPass lanes Maintaining the Infrastructure
12 New York Division’s Significant Infrastructure Improvement Projects Tappan Zee Bridge - Deck rehabilitation and substructure repairs ($147 million) Woodbury Toll Barrier - Reconstruction for Highway Speed E-ZPass ($60-$70 million) I-84/I-87 Interchange17 Contract 3 - Reconstruction, new bridges, direct connection to I-84 ($67 million) 77 miles of roadway improvements; 46 bridge rehabilitation, replacement or improvement projects
14 Syracuse Division’s Significant Infrastructure Improvement Projects Interchange 39 to 40 - Pavement reconstruction ($120 million) Interchange 37 to 39 - Pavement rehabilitation ($25 million) Interchange 33 to 34 - Pavement rehabilitation ($14 million) 138 miles of roadway improvements; 41 bridge rehabilitation, replacement or improvement projects
15 Buffalo Division’s Significant Infrastructure Improvement Projects Interchange 57 to 58 - Pavement and bridge rehabilitation ($69 million) Interchange 54 to Lackawanna Barrier - Pavement and bridge rehabilitation and replacement ($77 million) Williamsville Toll Barrier - Relocation ($67 million) 155 miles of roadway improvements; 85 bridge rehabilitation, replacement or improvement projects
16 Capital Projects Looking Ahead The Authority is committed to continuing to provide high levels of safety and service to its customers by investing more than $2.1 billion from 2005 to 2011. In 2008 there are 66 projects planned system wide totaling approximately $370 million. In 2009 there are 47 projects planned system wide totaling approximately $232 million. In 2010 there are 52 projects planned system wide totaling approximately $ 366 million. In 2011 there are 44 projects planned system wide totaling approximately $355 million. 2008 through 2011, there is approximately $1.3 billion earmarked for future improvement projects system wide.
17 Project Selection Process Overview Division and Headquarters maintenance engineers evaluate overall condition data on a system and project level basis Review the work history (both capital and maintenance) on each project Evaluate treatment options (including continued maintenance) Select projects for inclusion in proposed capital plan Evaluate proposed program versus available financial resources and, based on priority, adjust project selection and project scopes as needed to meet the available finances
19 Historical Capital Expenditures (millions of dollars)
20 Historical Capital Expenditures Adjusted for Inflation (millions of 2006 dollars)
21 Impacts of Deferring Capital Program on Pavement Uneven pavement Increased number of potholes Increased chance of hydroplaning (rutting) More frequent unscheduled lane closures for repair Deferring preventative maintenance of highways allows for accelerated deterioration of the underlying pavement structure and reduces the life of the pavement increasing future costs Reduction in overall safety
22 Maintaining Pavement Conditions Current pavement conditions near Interchange 39 (Syracuse, Fulton, I-690) westbound
23 Impacts of Deferring Capital Program on Bridges Deferring major rehabilitations and replacements results in negative impacts to the structural integrity of the bridge Deferring preventative maintenance will accelerate the deterioration of the structural elements of the bridge – leading to more extensive repairs and/or replacements While the Authority has never had to post a mainline bridge, eventually there could be a need to institute weight limit restrictions (load posting), which would significantly impact commerce. Reduction in overall safety
24 Maintaining Bridge Conditions Current Tappan Zee Bridge conditions
25 Bridges: Authority has maintenance responsibility for 807 bridges 131 bridges have been replaced since original construction 20 bridges will be replaced under this Capital Program After 2011, the Authority will have reconstructed less than 19% of the bridges on the 55 year old system Average rating: 5.15 in 2007, 5.06 in 2011 Highway: Authority has 2,430 lane miles of pavement 254 lane miles have been reconstructed since original construction 152 miles will be reconstructed under this Capital Program Average rating: 7.66 in 2007, 7.63 in 2011 Surface Pavement/Bridge Conditions
27 Stantec Toll Revenue Projections As a result of several factors, Stantec, an outside traffic engineering firm, has revised its traffic and revenue projections for 2007-2011 to show the following: Traffic Growth Revised Downward Shorter Average Trip Lengths Increased E-ZPass Usage Larger & more frequent fuel price spikes
28 National Traffic Growth Trends The national average of vehicle miles traveled has been nearly flat since January 2005 This 2 ½ year period is the longest period with no growth patterns since statistics were first reported by the FHWA in 1981
30 2007 Baseline Multi-Year Financial Plan (millions of dollars) 20072008200920102011 Total Revenues$580.6$607.8$615.3$628.3$641.5 Operating Expenses339.0353.5366.5380.9393.8 Operating Reserves3.02.0 Net Revenue (A)$238.6$252.3$246.8$245.4$245.7 Debt Service (B)135.5163.3195.3207.8233.9 Reserve Maintenance Fund126.96.36.199 OAP (Canal and I-84)82.4*80.580.080.276.5 Operating Balance$0.0 ($28.5)($42.6)($64.7) Pay-As-You-Go Financing44.1%16.3%12.1%11.4%12.6% Debt Service Coverage Ratio1.761.551.261.181.05 Note: Includes 10% increase in cash rates effective in January 2008, as approved in May 2005.
31 Closing the Gaps Preserve the $2.7 billion Capital Program Preserve the Commercial Volume & Commuter Discount Programs Eliminate any anticipated out-year operational gaps Maintain debt service coverage ratios of at least 1.7 in 2011 Increase pay-as-you-go financing of the Capital Program Enhance real property revenue Limit Thruway & OAP operating expenditure growth to 3.1% in 2008 Continue cost containment through 2011- more than 450 positions eliminated since 1995; additional 50 positions eliminated through 2011
32 Proposed Toll Adjustment Phased in approach so that the proposal can be revisited if circumstances change E-ZPass Discounts to 5% off cash rates for both passenger and commercial vehicle classes in June 2008, that will remain throughout the plan 5% general toll increase in January 2009 5% general toll increase in January 2010 Implement an increase at the barriers and bridges in 2009 only (except Grand Island where passenger cash customers will see no increase under this proposal) Increase commercial and towing congestion pricing rates at the Tappan Zee Bridge and Spring Valley in 2010
33 Proposed Toll Adjustment Continued Increase the fee for mainline commuters under the E-ZPass Annual Permit Program - from $80 to $84 in 2009, and $88 in 2010 (note: the permit plan has been $80 since 1988). Bridge & barrier commuter discount plan rates increase by 5% in 2009 and 2010 (except Grand Island where residents will see no increase). The E-ZPass Tappan Zee Bridge Commuter Program will see an increase from $2.00 to $3.00 per trip. Retain a 10% additional E-ZPass discount for vehicles with high fuel efficiency and super ultra low emissions (Green Pass Program). Preserve the existing Commercial Volume Discount Program.
34 Impact of Toll Adjustment If the cash rate for passenger vehicles increased by the rate of inflation, it would increase from 3.1 cents per mile in 1988 to 5.5 cents per mile in 2011. By the end of the proposed plan, in 2011 the cash rate will be 4.7 cents per mile. Despite the rate of inflation and additional responsibilities given to the Authority since 1991 totaling $1 billion, the proposed increase is less than 1 cent per mile The cash rate for passenger vehicles under the proposed plan will increase by 0.43 cents per mile and the E-ZPass rate will increase less than 1 cent per mile.
35 Commuter Plan Rates Annual Permit TZB Commuter New Rochelle Commuter GI Bridge Commuter Harriman/ Yonkers Commuter 2005$80.00$2.00$1.00$0.25$0.50 2008$80.00$2.00$1.00$0.25$0.50 2009$84.00$3.00$1.05$0.26$0.53 2010$88.00$3.00$1.10$0.28$0.55 *The Annual Permit can be used anywhere along the ticketed portion of the system for a flat fee, the first 30 miles or less of each trip is free.
36 Protecting the Daily Commuter Annual Permit Plan is $80 (unchanged since 1988), the first 30 miles of each trip is free; proposed to increase from $80 to $84 in 2009, and to $88 in 2010. Commuter making 200 round trips annually pays 20 cents per trip if 30 miles or less ($80 fee/400 trips). If implemented, the same trip would be 22 cents when fully phased- in, an increase of 2 cents per trip ($88 fee/400 trips).
37 Commercial Volume Discount In 2006, commercial vehicles participating in the Volume Discount Program saved a total of $21 million. A commercial charge account customer qualifies for a discount when toll charges total more than $1,000 per month. The discount applies to the monthly toll billing as follows: Total Charges Discounts $1,001 to $2,000 10% $2,001 to $3,000 15% Over $3,000 20%
38 Comparing Passenger (2L) Toll Rates 0 5 10 15 20 25 30 35 40 Delaware Turnpike Pocahontas Parkway Dulles Greenway Chesapeake Expressway John F. Kennedy Highway Dulles Toll Road Blue Star Turnpike Pennsylvania Turnpike New Jersey Turnpike Illinois State Toll Highway NYS Thruway (2011) Mass. Pike NYS Thruway (2008) West Virginia Turnpike Garden State Parkway Cents Per Mile
39 Comparing Commercial (5H) Toll Rates 0 10 20 30 40 50 60 70 80 90 Cents Per Mile Delaware Turnpike Pocahontas Parkway Dulles Greenway Chesapeake Expressway John F. Kennedy Highway Dulles Toll Road Blue Star Turnpike Illinois State Toll Highway NYS Thruway (2011) NYS Thruway (2008) Pennsylvania Turnpike New Jersey Turnpike Mass. Pike West Virginia Turnpike Garden State Parkway
40 Revised Multi-Year Financial Plan (millions of dollars) Note: Includes 10% increase in cash rates effective in January 2008, as approved in May 2005. 20072008200920102011 Total Revenues$580.6$632.7$713.9$757.4$773.8 Operating Expenses338.0352.8365.0376.8386.9 Operating Reserves3.02.0 Net Revenue (A)$239.6$278.0$346.9$378.6$384.9 Debt Service (B)132.3163.1188.9198.4218.6 Reserve Maintenance Fund25.134.478.2100.290.0 OAP (Canal and I-84)82.3*80.579.980.076.3 Operating Balance$0.0 Pay-As-You-Go Financing45.1%21.1%28.5%33.3%33.5% Debt Service Coverage Ratio1.811.701.841.911.76
41 The Public Process Preliminary Board approval to commence the public process Submission of Financial Reports to the Governor, State Comptroller and Legislative Fiscal Committees (Section 2804 of the Public Authorities Law) Submission of proposed regulations for filing and public comment in accordance with requirements of State Administrative Procedure Act (SAPA) Staff conducts public hearings (minimum of three statewide) 60 days after OSC’s review period Preparation of environmental review in accordance with State Environmental Quality Review Act (SEQRA) and assessment of public comment (assesses potential for diversion among other things) Final Board approval of toll adjustment, adoption of SEQRA findings and filing of Notice of Adoption in State Register.
43 Providing High Levels of Customer Service Snow and Ice Removal Interactive Mapping Free WiFi Connectivity at Travel Plazas E-ZPass Improvements System wide Newly Renovated Travel Plazas new & improved concepts
47 Toll Study Stantec, an outside engineering firm that specializes in traffic and transportation planning, is conducting a study to examine the costs, benefits and impacts of alternatives to the way Thruway tolls are collected. The framework for the study is expected to be completed near the end of 2007
48 Commitment to Service The Authority is committed to: Maintaining & operating the highway Implementing capital improvement program to deliver high levels of safety & service Improving the travelers’ experience
49 2007 Revised Budget and 2008 Proposed Budget
50 2007 Proposed Budget - $977.4 Million Expenditures revised downward by $51.3 million or 5.0% from original estimates. –Capital Program revised downward by $46.7 million. –Operating revised downward by $3.0 million, primarily due to cost containment efforts. –Debt Service revised downward by $1.6 million. Revenues revised downward by an equal amount. –Reduced toll revenues due to Elimination of toll collection at Black Rock and City Line Barriers in Buffalo. –Additional federal/state/other funds due to reimbursement for removal of Black Rock and City Line Barriers. –Reduced toll revenues due to impact high gas prices are having on traffic. –Above reductions partially offset by small increase in additional other income (interest income, real property revenue and fee revenue). Financial Benchmarks: Coverage ratio expected to equal 1.81x and PAYGO at 45.0%.
51 2008 Proposed Budget - $1.13 Billion Ensures: high levels of safety and service through a preserved Capital Program. Retains: financial strength through additional revenue actions and spending restraint. Total budget increases by $150.0 million or 15.3% over 2007 Revised Budget. Nearly ¾’s of this increase is due to growth in Capital Program. Thruway and OAP Operating: $418.8 million, $12.7 million or 3.1% over 2007. Includes continued discretionary cost containment and staffing reductions. –After adjusting for non-discretionary costs (such as health insurance, fuel and energy prices, diesel fuel emission requirements, et. al.) operating expenses would have grown by less than 1.0% - highlighting the success of ongoing cost containment. Capital Program: $545.4 million, $106.5 million or 24.3% over 2007. Capital expenditures in 2008 one of the largest investments in the Thruway’s highway and bridge infrastructure in history. Debt Service: $163.1 million, $30.8 million or 23.3% over 2007. Increases due to greater reliance on financing the Thruway’s Capital Program. Financial Benchmarks: Despite additional revenues expected from proposed toll adjustment, coverage ratio expected to drop to 1.7x and PAYGO to 21.1%.
52 2008 Proposed Budget – Sources (millions of dollars) Total Budget = $1.13 billion
53 2008 Proposed Budget – Uses (millions of dollars) Total Budget = $1.13 billion