TOLL ROAD BOARDS APPROVE FY2008 BUDGETS
Budgets totaling $396.3 million focus on debt service, future construction projects; Toll rate changes for 73, 241, 261 Toll Roads take effect July 2
IRVINE, Calif. (June 14, 2007) -- The Boards of the San Joaquin Hills and Foothill/Eastern Transportation Corridor Agencies today approved Fiscal Year 2008 budgets totaling $396.3 million, of which 66%, or $261.3 million, will be used for debt service and related debt expenses on the Agencies’ long-term bonds.
Total combined revenue for both Agencies – from tolls, development impact fees, FasTrak account maintenance fees, toll violations penalties, interest earnings, and other income – is budgeted at $337.2 million, with approximately 60% of total revenue coming from tolls. The San Joaquin Hills Agency’s budgeted revenue includes a $30 million payment from the Foothill/Eastern Agency in accordance with the financial agreement approved by both Agencies in 2005. Funds from the Foothill/Eastern Agency are coming from available construction funds for the Foothill-South project, the last segment of the 241 Toll Road.
Expenditures appear to exceed budgeted revenue because interest accretion on the principal of certain bonds is recorded as a current-year, non-cash expenditure. Without accretion, the Agencies’ FY2008 budgets total $299.6 million.
TOLL RATE CHANGES
With approval of the budget, the Board of the San Joaquin Hills Agency set 25-cent toll increases for FasTrak and cash patrons at the Catalina View Mainline Toll Plaza and the
Newport Coast Road and El Toro Road ramps. The Foothill/Eastern Agency Board, which oversees operation of the Foothill (241) and Eastern (241, 261, and 133) Toll Roads, approved a budget that included 25-cent increases at Portola Parkway West and Oso Parkway. (See attachment for proposed toll rate locations.) The new toll rates will be implemented at midnight on Monday, July 2, 2007. (Weekend rates will be in effect on the July 4th holiday.)
Map of San Joaquin Hills toll rate increases.
Map of Foothill/Eastern rate increases.
OTHER BUDGET HIGHLIGHTS
Highlights of the proposed FY2008 budgets for both Agencies include:
- Foothill-South: Expenses related to the completion of the 241, known as Foothill-South, are included to support the final environmental permitting process and for the Foothill/Eastern Agency’s response to legal challenges. The preliminary engineering phase of the project will wind down in the next year and outreach efforts will be expanded.
- Capital Improvement Program: Construction is planned to begin on widening the 241 Toll Road at the Windy Ridge Toll Plaza and widening the northbound 73 Toll Road from south of Glenwood /Pacific Park Drive to MacArthur Boulevard.
- Reserve funds and surplus revenues: At the end of FY2008, the Agencies are expected to have approximately $470.9 million in their respective debt service reserve funds. The Foothill/Eastern Agency’s reserve funds are full as required by the 1999 bond indenture. The F/ETCA will have approximately $48 million in surplus revenues after expenses and debt service. Surplus toll revenues may be used to fund future toll-road construction projects, operational costs, or to defease debt ahead of schedule.
- Debt service coverage: Based on the budgets, the Foothill/Eastern Agency’s debt coverage ratio is calculated at 1.68, which means that the Agency anticipates collecting $1.68 of net toll revenue for every $1 of debt service. The San Joaquin Hills Agency’s debt coverage ratio is 1.32. Both Agencies’ bond indentures require a minimum coverage ratio of 1.30.
ABOUT TCA
More than 320,000 trips are taken on The Toll Roads every weekday. The Toll Roads are operated by the Foothill/Eastern and San Joaquin Hills Transportation Corridor Agencies, two joint powers authorities formed in 1986 to plan, finance, construct, and operate Orange County's 67-mile public toll road system. Fifty-one miles of the system are complete, including the San Joaquin Hills (73) Toll Road from Newport Beach to San Juan Capistrano; and the Foothill (241) and Eastern (241, 261, and 133) Toll Roads from the 91 Freeway to south Orange County.
More information: www.thetollroads.com.
