Wednesday, December 21, 2005

'Tolling Philosphy': Where ideology collides with reason

County votes on tolling philosophy

December 21, 2005

By KRYSTAL DE LOS SANTOS
McKinney Courier-Gazette
Copyright 2005

Collin County Commissioners on Tuesday voted on a “toll philosophy” they would like to see the North Texas Tollway Authority adopt for its current and future projects, which may soon include S.H. 121.

The NTTA's board will vote on one of five possible alternatives today: 1, 2, 3, 3A and 4. Collin County commissioners and Collin County's representative on the NTTA board are in favor of alternative 3.

Paul Wageman, Collin County's representative on the NTTA board, said he is in favor of alternative 3 because it means that revenue generated in Collin County and Dallas County does not subsidize future projects in Fort Worth. The planned Southwest Parkway, according to traffic and revenue studies, is not projected to be as financially sound of a project as other NTTA toll roads.

“It really protects the revenue we generate from the existing system so we can use it on projects that are financially feasible,” he said. “I think we should take a second look at (Southwest Parkway.)”

He added that alternative 3 is a “more conservative approach” to the future projects and that under alternative 4, “we're exporting more of our hard-earned nickels and dimes to Fort Worth to build a very expensive project that has a lot of bells and whistles and is not feasible.”

Wageman said that S.H. 121 would be a “high performing road” that would need no system support besides credit in its initial building stages, but would pay for itself in a “fairly short period of time.”

The “guiding principle” for alternative 3, according to the NTTA is that “new projects are supported at historic levels and tolls are set to limit system support and accelerate projects' contribution to the system. New projects with “extras” pay extra toll for non-standard features.”

Under alternative 3, drivers on the planned George Bush Turnpike Eastern Extension, for example, would pay 15 cents per mile, toll rates would increase an average of about 3 percent each year, with the toll rate reset occurring every five years.

Drivers on the Southwest Parkway in Fort Worth would pay 19 cents per mile, and toll rates would change in the same manner.

Drivers on existing NTTA toll roads would pay 11 cents per mile by 2007. Rates change on an average of 1 percent annually, and are reset every five years. Toll rates will rise to 12 cents in 2010.

Under alternative 4, “All new projects would be supported by the system with uniform toll rates on all facilities. New projects with extras pay extra toll for non-standard features.”

If board members choose alternative 4, the Eastern Extension will be tolled at a rate of 12 cents per mile, with 1.5 percent annual rate increase, and a rate reset every five years. Southwest Parkway would be tolled at 16 cents per mile. The same rate changes as the Eastern extension would apply.

Though drivers on the existing NTTA roads will pay the same 12 cents per mile in 2010 as in alternative 3, the annual rate increase would be 1.5 percent, and the rate would be reset every five years.

At a board meeting Nov. 11, members developed a compromise alternative that blended alternative 3 and 4, lowering the toll rate for the Eastern Extension and Southwest Parkway. Alternative 3A takes into account toll rate increases for non-standard features which are either nonrecurring or recurring costs. The road's financial feasibility is tested every five years to ensure the road is covering its costs and the toll rate is set and reset to pay for the road by its 10th year of operation. The rate can be decreased after it meets its “financial test.”

Under alternative 3A, driving on the Eastern Extension would cost 13 cents per mile. The toll rate would change by 1.5 percent annually. Southwest Parkway drivers would pay 17 cents per mile and toll rate would change by 3 percent annually.

Existing NTTA roads would still pay 12 cents in 2010, have a 1.5 percent annual rate increase and be reset every five years.

County Judge Ron Harris agreed that alternative 3 is the most fair of the alternatives.

“If (Southwest Parkway) can't pay its way, it shouldn't be built,” he said.

Commissioner Phyllis Cole also voted in favor of Alternative 3, but said that “we wouldn't have these toll roads at all if Dallas felt the same way we did about being part of the system,” she said, referring to the creation of the President George Bush Turnpike and the Dallas North Tollway and their benefits to Collin County citizens.

Commissioner Jack Hatchell said he also is in favor of alternative 3.

“What I'm getting from our residents is, ‘I don't want to subsidize Southwest Parkway,” he said. “(Alternative 3) would mean that Southwest Parkway in Fort Worth would be paying its own way, making enough money off tolls to pay for the debt service and maintenance and operations.”

He added the NTTA board's decision on tolling philosophy will not affect the S.H. 121 toll rate. County officials are still negotiating with the Texas Highway Commission to keep excess tolling revenue from the road in Collin County.

If S.H. 121 does become part of the NTTA system, however, toll revenue is used to pay off the bond to build the road, and NTTA keeps an additional 35 percent of the cost to build the road as part of a dues-type system to help finance other projects. The excess is sent to the Texas Department of Transportation. Collin County hopes to convince the Texas Highway Commission to direct TxDOT to use those funds on projects in Collin County.

Contact Krystal De Los Santos at krystal.delossantos@scntx.com.

Copyright © 2005 The Courier-Gazette. www.courier-gazette.com

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