New Jersey Turnpike Authority ANNUAL BUDGET 2019 Prepared by the Finance Department: Donna Manuelli, Chief Financial Officer 1 Turnpike Plaza Woodbridge, NJ 07095 ANNUAL BUDGET 2019 2019 Table of Contents Transmittal Letter ........................................................................................................................................................................ 1 Distinguished Budget Presentation Award .................................................................................................................................. 2 Vision Statement ......................................................................................................................................................................... 3 Mission Statement ....................................................................................................................................................................... 3 Core Values .................................................................................................................................................................................. 3 Background .................................................................................................................................................................................. 4 The Turnpike ............................................................................................................................................................................ 4 The Parkway ............................................................................................................................................................................ 5 Financial Policies Summary .......................................................................................................................................................... 7 Financial Management Principals and Guidelines ................................................................................................................... 7 Debt Management Policy ........................................................................................................................................................ 7 Interest Rate Swap Management Plan .................................................................................................................................... 8 Investment Policy .................................................................................................................................................................... 8 Financial Plan ............................................................................................................................................................................... 9 Financial Plan Key Highlights ................................................................................................................................................... 9 Revenue .............................................................................................................................................................................. 9 Operating Expenses ............................................................................................................................................................ 9 Net Debt Service ................................................................................................................................................................. 9 Maintenance Reserve Fund and the Special Project Reserve Fund .................................................................................... 9 State Payments ................................................................................................................................................................... 9 The Strategic Plan ...................................................................................................................................................................... 11 New Jersey Turnpike Authority 2018 Accomplishments and 2019 Goals ................................................................................. 13 Safety ..................................................................................................................................................................................... 13 Financial Strength .................................................................................................................................................................. 16 Mobility ................................................................................................................................................................................. 17 State of Good Repair ............................................................................................................................................................. 18 People .................................................................................................................................................................................... 19 Key Financial Metrics ............................................................................................................................................................. 20 Toll Revenue as % of Operating Revenue .............................................................................................................................. 20 Operating Margin Ratio ......................................................................................................................................................... 21 Cost Recovery Ratio ............................................................................................................................................................... 22 Average Toll/Transaction – Turnpike .................................................................................................................................... 23 Average Toll/Transaction – Parkway ..................................................................................................................................... 23 Toll Revenue/Lane Mile ......................................................................................................................................................... 24 Operating Cost/Lane Mile ..................................................................................................................................................... 25 Debt/Lane Mile ...................................................................................................................................................................... 26 Page i ANNUAL BUDGET 2019 2019 Executive Summary ................................................................................................................................................................... 27 Organization Chart ..................................................................................................................................................................... 34 Fund Structure ........................................................................................................................................................................... 35 Description of Funds.............................................................................................................................................................. 35 Revenue Requirement ........................................................................................................................................................... 36 Basis of Budgeting ...................................................................................................................................................................... 38 Budget Procedure ...................................................................................................................................................................... 40 Summary of Major Revenues and Expenses .............................................................................................................................. 42 Sources of Revenue ............................................................................................................................................................... 42 Allocation of Revenue ........................................................................................................................................................... 43 Revenue ..................................................................................................................................................................................... 44 2019 Revenue Budget ........................................................................................................................................................... 44 Key Assumptions: .............................................................................................................................................................. 44 Toll Statistics .......................................................................................................................................................................... 45 Toll Transactions by Vehicle Type and Roadway .............................................................................................................. 45 Toll Revenue by Vehicle Type and Roadway ....................................................................................................................