New York State Thruway Financial Requirements and Proposed Toll Adjustments
Total Page:16
File Type:pdf, Size:1020Kb
New York State Thruway Financial Requirements and Proposed Toll Adjustments December 18, 2019 Prepared for: New York State Thruway Authority Prepared by: Stantec Consulting Services, Inc. Table of Contents 1.0 INTRODUCTION AND EXECUTIVE SUMMARY ............................................................. 1 2.0 THE NEW YORK STATE THRUWAY SYSTEM .............................................................. 3 2.1 BACKGROUND ................................................................................................................ 3 2.2 ROADWAYS ..................................................................................................................... 4 2.3 BRIDGES .......................................................................................................................... 5 2.4 SERVICE AREAS AND BUILDINGS ................................................................................ 6 2.5 SAFETY, INCIDENT RESPONSE AND TRAVELER INFORMATION SYSTEMS ........... 7 2.6 ANNUAL ROUTINE MAINTENANCE ACTIVITIES ........................................................... 8 3.0 HISTORICAL REVIEW OF THE AUTHORITY’S FINANCES .......................................... 9 3.1 HISTORICAL OPERATING AND MAINTENANCE EXPENSES ...................................... 9 3.2 HISTORICAL CAPITAL EXPENDITURES ...................................................................... 11 3.3 HISTORICAL DEBT SERVICE EXPENSES ................................................................... 13 3.4 HISTORICAL TRAFFIC AND REVENUES ..................................................................... 13 3.4.1 Traffic ............................................................................................................. 13 3.4.2 Toll Revenues ................................................................................................ 15 3.4.3 Other Revenues ............................................................................................ 16 3.5 HISTORICAL FLOW OF FUNDS ANALYSIS ................................................................. 18 4.0 THRUWAY TRIPS AND CUSTOMERS ......................................................................... 20 5.0 CAPITAL PROGRAM ..................................................................................................... 23 5.1 2019-2024 CAPITAL PROGRAM DETAILS ................................................................... 23 5.2 THE NEW NY BRIDGE PROJECT / GOVERNOR MARIO M. CUOMO BRIDGE .......... 24 5.3 PLANNED CAPITAL EXPENDITURES .......................................................................... 25 5.4 THE IMPACT OF THE CAPITAL PROGRAM ON CONDITIONS ................................... 26 6.0 EXPENSES AND REVENUES WITH THE CURRENT TOLL SCHEDULE ................... 29 6.1 PROJECTED OPERATING AND MAINTENANCE EXPENSES .................................... 29 6.2 PROJECTED DEBT SERVICE EXPENSES ................................................................... 29 6.3 PROJECTED TRAFFIC AND REVENUES ..................................................................... 30 6.3.1 Projected Traffic with Current Toll Schedule ................................................. 30 6.3.2 Projected Toll Revenue with Current Toll Schedule ...................................... 30 6.3.3 Other Revenues/Total Revenues with Current Toll Schedule ....................... 31 6.4 FLOW OF FUNDS .......................................................................................................... 32 7.0 PROPOSED MODIFICATIONS TO CURRENT TOLL RATES AND THE IMPACT TO THE AUTHORITY’S FINANCIALS ............................................................ 34 7.1 RECENT HISTORY OF TOLL ADJUSTMENTS ON THE THRUWAY SYSTEM ........... 34 7.2 CURRENT TOLL RATES ON THE THRUWAY SYSTEM .............................................. 34 7.3 PROPOSED TOLL MODIFICATIONS ............................................................................ 36 i 7.4 COMPARISON OF PROPOSED THRUWAY TOLL RATES TO OTHER REGIONAL TOLL FACILITIES ....................................................................................... 39 7.4.1 Toll Rate Comparison .................................................................................... 39 7.4.2 Comparison of Tolls by Mail Charges ............................................................ 44 7.5 TRAFFIC AND REVENUE WITH PROPOSED TOLL MODIFICATIONS ....................... 44 7.6 FUNDING REQUIREMENT AND SOURCES ................................................................. 46 8.0 SUMMARY OF FINDINGS ............................................................................................. 47 9.0 LIMITS AND DISCLAIMERS .......................................................................................... 49 APPENDIX: PROPOSED TOLL RATE SCHEDULES ............................................................... 51 ii List of Figures Figure 1: New York State Thruway Toll Systems ......................................................................... 4 Figure 2: Historical Thruway Traffic Volumes ............................................................................. 14 Figure 3: 2018 System Wide Traffic and Revenue Distribution .................................................. 20 Figure 4: 2018 Passenger Car and Commercial Vehicle Traffic Distribution by Facility ............. 21 Figure 5: Distribution of 2018 Toll Revenues by Thruway Facility .............................................. 22 Figure 6: New NY Bridge Project ................................................................................................ 25 Figure 7: Historical and Forecasted Thruway Pavement Distress Indices (PDI), 2005- 2024 ............................................................................................................................. 27 Figure 8: Historical and Forecasted Thruway Bridge Condition Ratings, 1990-2024 ................. 28 Figure 9: Governor Mario M. Cuomo Bridge Proposed 2022 Passenger Car Toll Rates and Share of Traffic in Each Category ......................................................................... 39 Figure 10: Round Trip Toll Rates on Major Toll Crossings in the Northeast, Passenger Cars .............................................................................................................................. 40 Figure 11: Round Trip Toll Rates on Major Toll Crossings in the Northeast, 5-Axle Trucks ........................................................................................................................... 41 Figure 12: Peak Toll Rates Per-Mile on Toll Roads in the Northeastern Quadrant of U.S., Passenger Cars ................................................................................................... 42 Figure 13: Peak Toll Rates Per-Mile on Toll Roads in the Northeastern Quadrant of U.S, 5-Axle Trucks ............................................................................................................... 43 List of Tables Table 1: Proposed Toll Modifications ........................................................................................... 2 Table 2: The Thruway System ..................................................................................................... 5 Table 3: The Thruway System’s Actual Operating and Maintenance Expenses, 2008 – 2018 (millions) .............................................................................................................. 10 Table 4: Actual Capital Expenditures, 2008-2018 (millions) ....................................................... 11 Table 5: 2008-2018 Actual Funding Sources, Thruway Authority (millions) ............................... 12 Table 6: Actual Debt Service, Thruway System, 2008-2018 (millions) ....................................... 13 Table 7: The Thruway System’s Actual 2008-2018 Tolled Traffic (millions of trips) ................... 15 Table 8: The Thruway System’s Actual 2008-2018 Toll Revenues (millions) ............................. 16 Table 9: Summary of 2008 – 2018 Actual Thruway System Gross Total Revenues (millions) ....................................................................................................................... 18 Table 10: Historical Thruway Flow of Funds and Debt Service Coverage (millions) ................. 19 Table 11: Controlled System Toll Plazas with the Highest Volumes, 2018 ................................ 22 Table 12: Projected 2019-2024 Total Capital Expenditures (millions) ........................................ 26 Table 13: Projected 2019-2024 Funding Sources, Thruway Authority (millions) ........................ 26 Table 14: Bridge Conditions, December 2018 and December 2017 .......................................... 28 Table 15: The Thruway System’s Projected 2019-2024 Operating and Maintenance Expenses (millions) ...................................................................................................... 29 Table 16: Projected 2019-2024 Debt Service with Current Toll Schedule, Thruway System (millions) .......................................................................................................... 30 Table 17: Projected 2019-2024 Tolled Traffic with Current Toll Schedule (millions of trips) ............................................................................................................................. 30 Table 18: Projected 2019-2024 Toll Revenues with Current Toll Schedule (millions) ................ 31 Table 19: Projected 2019-2024 Thruway System Total Gross Revenues with Current Toll Schedule (millions)