sr 836 and sr 112 rate setting workshop · 10/2/2012 · • bond series 2010 fully funded the fy...
TRANSCRIPT
SR 836 and SR 112 Rate Setting Workshop
October 2, 2012
Agenda
PurposePurpose Where are we today?Where are we today?
Where are we going?Where are we going?
How do we get there?How do we get there?
Toll Rate OptionsToll Rate Options
Purpose of Meeting
• Discuss options for rates on SR 836 and SR 112• Presentation of Proposed New Toll Policy• Review schedule for toll rate approval
Timeline – Post ORT Master Plan
28% of Users Pay
42% of Users Pay
SR 924, SR 874, SR 878 Go‐Live
97% of Users Will Pay
SR 112/SR 836 Go‐Live
Toll Rate Setting for Pilot ORT
SR 836 Extension &
Project Opened
SR 924, SR 874, SR 878 Toll Rate Approval
ORT Master Plan
Approved
SR 112/SR 836 Civil & Gantry work begins
SR 112/SR 836 Toll Rate Approval
2006
2007
2009
2014
2010
2013
2008
Updated Toll Rate Policy Approval
55% of Users Pay
2012
Current Financial Position• No further bonding capacity to fund projects• No future toll increase is assumed in financing plan• Revenue is not indexed to Consumer Price Index• Bond Series 2010 fully funded the FY 2011‐2015 work program
• Additional ORT revenue for SR 112 and SR 836 is not leveraged
• R&R is funded annually from ongoing revenue• Coverage ratios must be maintained at 1.4x
MDX Unfunded Projects – Shovel Ready
$85 Million
$65**/$160***Million
$160 Million
$220* Million
Approx. $800 Million in Unfunded Needs
* Excludes Right‐Of‐Way** Phase 1 ‐12 Ave Ramp
(MDX)***Phase 2 –SR 836 Improv.
(MDX)
LEGEND83611–SR 836 / I‐95 Interchange (MDX/FDOT Joint Participation)83628–SR 836 East of Section 583629–SR 836 / NW 87 Avenue87410–SR 874 Ramp Connector92404–SR 924 Extension West$110* Million
TOTALREVENUES
FINANCIALCAPACITY
PROJECTINVESTMENT
Funding Gap
$1.3BCURRENTDEBT
PROJECTPRIORITIES
$125M
FROM INCEPTION TO FY 2014WORK PROGRAM
SR 874SR 878SR 924
FUNDING GAP$800 M
SR 836 & SR 112‐ Existing Tolling Locations
Rate Setting Methodology
• Toll Rate sensitivity (consumer)• Industry average• Time value for trips• Equitability• Direct correlation to economic impact
MDX Toll Rates Compared to OthersRevenue Generation Alternative Estimated Average
Toll Rate / Mile(FY‐15)*
Turnpikes $0.02 ‐ $0.08
Orlando‐Orange County Expy. Auth. SR 408 (FL) $0.15
North Texas Tollway Auth. (TX) $0.16
Central Texas Regional Mobility Authority (TX) $0.17
Tampa‐Hillsborough County Expy. Auth. (FL) $0.17
Massachusetts Turnpike‐Boston Extension (MA) $0.23
Indiana Toll Road Concession (IN) $0.23
Richmond Metropolitan Authority Powhite Parkway (VA) $0.24
E‐470 Public Highway Authority (CO) $0.32
Dulles Greenway (VA) $0.32
South Bay Expressway LP (CA) $0.39
MDX options Toll Rate per mile for SR 836 and SR 112
$0.15 ‐ $0.18
* Only includes known future toll rate increases
SR 836 Toll Rate Options
Note:All ramps are assumed at a rate of $0.30
Option 1 Option 2 Option 3 Option 4 Option 5
Mainline $0.60 $0.65 $0.60/.75 $0.70 $0.75
Additional bonding revenue $41 M $47.1 M $47.2 M $53 M $59 M
Bonding capacity $369 M $424 M $425 M $479 M $534 M
Average rate per mile $0.15 $0.16 $0.16 $0.17 $0.18
Average increase for roundtrips
$0.90‐$1.40
$1.10‐$1.60
$1.20‐$1.70
$1.30‐$1.80
$1.50‐$2.00
Percentage of projects funded 46% 53% 53% 60% 67%
Job years created/retained 4,000 4,600 4,620 5,200 5,800
SR 836 Common Trips – Option 1
TripsExisting Future
From To
SR 874 MIA $2.00 $3.20
SR 874 Downtown $3.00 $4.40
SR 826 MIA $0.00 $1.20
SR 826 Downtown $1.00 $2.40
Turnpike MIA $1.50 $2.40
Turnpike Downtown $2.50 $3.60
$0.60 Mainline / $0.30 Ramps
SR 836 Common Trips – Option 2
TripsExisting Future
From To
SR 874 MIA $2.00 $3.30
SR 874 Downtown $3.00 $4.60
SR 826 MIA $0.00 $1.30
SR 826 Downtown $1.00 $2.60
Turnpike MIA $1.50 $2.60
Turnpike Downtown $2.50 $3.90
$0.65 Mainline / $0.30 Ramps
SR 836 Common Trips – Option 3
TripsExisting Future
From To
SR 874 MIA $2.00 $3.50
SR 874 Downtown $3.00 $4.70
SR 826 MIA $0.00 $1.50
SR 826 Downtown $1.00 $2.70
Turnpike MIA $1.50 $2.70
Turnpike Downtown $2.50 $3.90
$0.65 Mainline / $0.75 57th Ave Mainline / $0.30 Ramps
SR 836 Common Trips – Option 4
TripsExisting Future
From To
SR 874 MIA $2.00 $3.40
SR 874 Downtown $3.00 $4.80
SR 826 MIA $0.00 $1.40
SR 826 Downtown $1.00 $2.80
Turnpike MIA $1.50 $2.80
Turnpike Downtown $2.50 $4.20
$0.70 Mainline / $0.30 Ramps
SR 836 Common Trips – Option 5
TripsExisting Future
From To
SR 874 MIA $2.00 $3.50
SR 874 Downtown $3.00 $5.00
SR 826 MIA $0.00 $1.50
SR 826 Downtown $1.00 $3.00
Turnpike MIA $1.50 $3.00
Turnpike Downtown $2.50 $4.50
$0.75 Mainline / $0.30 Ramps
SR 112 Toll Rate Options
Option 1 Option 2 Option 3 Option 4
Mainline $0.30 $0.35 $0.40 $0.45
Additional bonding revenue $1.6 M $3.8 M $5.9 M $8.1 M
Bonding capacity $15 M $34 M $53 M $73 M
Average rate per mile $0.15 $0.17 $0.20 $0.22
Average increase for roundtrips $0.20 $0.40 $0.60 $0.80
Additional Percentage of projects funded 2% 4% 7% 9%
Job years created/retained 18 360 580 800
Proposed New Toll Policy
• CPI Adjustment− Starting July 2015 − Rounded to nearest $0.05− Miami/Ft. Lauderdale index
• Toll‐By‐Plate rate equal to Twice the SunPass rate− Starting July 2013
• New projects shall be self sustained within 5 years (Principal, Interest and O&M)
• Toll rate setting must comply with Trust Indenture, all agreements and coverage requirements
Closing the Funding Gap
$110
$65 $369
Option 1
$160
$85
$220
$160
$‐
$100
$200
$300
$400
$500
$600
$700
$800
$900
Unfunded Project Needs Bonding Capacity
83611 Ph.2 ‐SR 836 Improv/I‐95
92404‐SR 924 West Extension
83629 ‐SR 836/87 Ave
83628 ‐Ph1B,2. SR 836 Improv East
83611 Ph.1 ‐SR 836/12 Ave
87410 ‐SR 874 Ramp Connector
‐CPI‐Toll Adjustments‐Minor Contributions (Non‐Toll Revenue)
‐State & Federal Grants‐Partnerships
$424Option 2
$425Option 3
$479Option 4
$534Option 5
Revenue Potential – CPI in FY 2015
$0$50$100$150$200$250$300$350$400$450$500
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
Millions
Current Revenue SR 112/SR 836
CPI starts
Note:Does not assume any toll adjustment.
Fiscal Years
Revenue Potential ‐ CPI in FY 2008
$0$50$100$150$200$250$300$350$400$450$500
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
Millions
Current Revenue SR 874/878/924 SR 112/SR 836
Fiscal Years
CPI starts
Revenue Potential Comparison
$‐
$100
$200
$300
$400
$5002012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
Millions
CPI in FY 2008 CPI in FY 2016
$358M
$440M
Fiscal Years
Time/Value/Money Comparison
1953 1983 1995 2005 2011
Loaf of bread $0.16 $0.20 $1.15 $1.25 $1.98
Gallon of Milk $0.94 $2.24 $2.96 $2.22 $3.39
Gallon of Gas $0.22 $1.20 $1.09 $3.18 $3.52
First Class Stamp $0.03 $0.20 $0.32 $0.37 $0.44
Average Car $1,850 $8,500 $15,500 $28,400 $30,748
Average Home $17,400 $82,600 $113,150 $297,000 $202,100
• Last toll increase in 2005 ‐ 7 years ago• $1.00 in 2005 is the equivalent of $1.25 today
Next Steps• Elected Official briefings• Public reviews• Consideration by Budget & Finance and Policy & Planning Committees
• Public Hearings• Board meeting & adoption of Toll Policy• Board approval of rates for SR 112 and SR 836• Simultaneous approval of the Five‐Year Work Program & updated Financing Plan
Board Discussion